Fernandina Beach property owners will pay a higher tax rate after the City Commission adopted a $228 million budget and raised the millage rate Tuesday.

The operating millage rate is now 4.853 mills, 9.24% above the rollback rate of 4.4425 mills. That resolution passed 4-1. The budget itself passed unanimously. The commission had tentatively set the millage rate Sept. 3, also on a 4-1 vote, with Vice Mayor Darron Ayscue casting the lone dissent at that hearing.

The identity of the dissenting vote on the final millage resolution has not been confirmed. Nassau NewsLine reported it requested a roll call breakdown from the city clerk.

City Manager Sarah Campbell told commissioners all 30 city funds are balanced and the city met its mandatory 20% general fund reserve. The general fund grew from $45 million to $50 million. Of the $228 million total, $93 million is held in reserve, mostly for pension and fiduciary funds.

$25,000 shifted to Council on Aging funding

Commissioner Joyce Tuten asked the board to move $25,000 from the city's contingency fund to the Nassau County Council on Aging, saying the nonprofit lost funding and staff positions after Nassau County cut its budget. The Council on Aging operates the Janice Ancrum Senior Life Center at 1901 Island Walk Way in Fernandina Beach, offering programs including Meals on Wheels and adult day health care.

Commissioner Genece Minshew initially asked the commission to wait until after the Nov. 3 vote on a statewide homestead exemption amendment, saying the outcome could affect city finances next year. Vice Mayor Ayscue said he supported the funding whether it happened immediately or after November, saying he did not want to pull support from local nonprofits without notice.

At the Sept. 3 tentative hearing, Ayscue voiced broader concerns about taxpayer burden. "That is a cry … from constituents across the state of Florida and here in Fernandina Beach that are tired of local governments spending every dime that they can get their hands on," he said, as Action News Jax reported.

Commissioners voted to move the $25,000 immediately and folded it into the final budget.

In-house marina management saves city $60,000

Tuten walked through several budget details. She said the city eliminated a $700,000 marina management contract by bringing operations in-house, saving about $60,000 while adding three full-time and seven part-time positions funded through the marina's enterprise fund rather than taxes.

The city is down about 21.5 positions in tax-funded departments since fiscal year 2024-25, Tuten said, even as it added fee-funded roles including a chief resiliency officer. She said inflation added about $2.3 million in costs this year across salaries, workers' compensation and fuel.

During public comment, resident George Sirota asked about a 21.5% increase in the city manager's department budget. Campbell said the increase largely reflects shifting a capital project manager position, previously split between two departments, fully into the city manager's office.

Public session addresses marina redevelopment plans

The city hosted a public information session on the marina redevelopment project at 2 p.m. Wednesday at City Hall Commission Chambers, 204 Ash St. The project aims to strengthen the seawall, improve public riverfront access and enhance marina operations using local revenue and state and federal grants.