A local government watchdog group is questioning whether Fernandina Beach's proposed stormwater utility fee would fairly charge property owners for their actual use of the city's drainage system.

Nassau FL DOGE published its first white paper on Wednesday, Sept. 2, titled "Stormwater Utility Fees and Cost-of-Service Equity in Fernandina Beach, Florida." The group released the paper through Nassau Community Press, describing it as the start of a series examining local government spending.

Critique Centers on How the Fee Measures Property Impact

The paper's central argument centers on the way the figure was calculated. The city's proposed fee methodology measures impervious surface area on each property but does not account for the actual hydraulic demand each property places on city-owned infrastructure. That includes where stormwater ultimately flows and who owns and maintains the drainage system receiving it, according to the group's announcement.

City's Stormwater Budget Set to Grow Sixfold

The critique lands as the city prepares for a significant jump in stormwater spending. City Manager Sarah Campbell's proposed 2026-27 budget would grow stormwater expenditures from just over $1 million to approximately $6 million, the Fernandina Observer reported Aug. 4.

Commissioners Set Tentative Rate at Highest Option

That budget is part of a broader fiscal squeeze. The City Commission voted 4-1 on July 28 to set a tentative property tax rate of 4.8530 mills, the highest of four options staff presented. Mayor James Antun and Commissioners Tim Poynter, Genece Minshew and Joyce Tuten supported the higher rate. Vice Mayor Darron Ayscue voted against it.

Rate Hike Would Cost $41 More on a $100,000 Property

The proposed rate represents a 9.24% increase over the rollback rate under Florida's Truth in Millage law, according to the Fernandina Observer. For a property with $100,000 in taxable value, the difference between the rollback rate and the proposed rate amounts to $41.05.

Parking Referendum Defeat Added to Budget Strain

The budget pressure intensified after roughly 75% of Fernandina Beach voters approved a referendum on Aug. 18 rejecting paid parking. The city had committed $1.5 million in anticipated paid-parking revenue to its waterfront redevelopment project.

"We have significant issues sitting on the table that are all connected financially that we do not have a long-term plan for today," Minshew said at the July 28 commission meeting.

City Yet to Respond as Public Hearings Approach

Nassau FL DOGE did not identify a spokesperson or author for the white paper. The city had not publicly responded to the group's claims as of Sept. 2.

The City Commission holds a special meeting and public hearing Thursday, Sept. 3, at 5 p.m. to review the proposed 4.8530-mill rate. A final public hearing on the 2026-27 millage rate and budget is scheduled for Tuesday, Sept. 15, at 5:05 p.m.