May 18, 2026 Town Hall Meeting

[1. CALL TO ORDER]

[00:00:05]

GRANICUS-SWAGIT. >> IT IS THE RIGHT AT 6:00.

[2.1 City Manager Sarah Campbell will welcome attendees and provide an overview]

I AM THE CITY MANAGER IN FERNANDINA BEACH.

I WANT TO THANK YOU ALL FOR COMING.

KIND OF A WEIRD TOPIC AND WEIRD NIGHT SO THANK YOU FOR COMING IN TO LEARN ABOUT PROPERTY TAXES AND THE CITY'S BUDGET.

SOME OF OUR ELECTED OFFICIALS ARE JOINING US TONIGHT.

SOME HAVE SEEN THIS PRESENTATION BUT OTHERS MIGHT BE NEW TO THEM.

THE CITY CLERK, CAROLINE BEST IS HERE.

DEPUTY CITY MANAGER. WE ARE VIDEO RECORDING TONIGHT.

SO IF YOU HAVE FRIENDS AND NEIGHBORS THAT WANT TO HEAR THE PRESENTATION WE WILL PUT THAT ON THE CITY WEBSITE WITH OUR OTHER RECORDINGS. YOU CAN GO BACK AND WATCH IT LATER. COME ON IN.

IT'S GOING TO BE A CASUAL FORMAT TONIGHT.

PRETTY INTERACTIVE. AND I HAVE GOT A LOT OF HANDOUTS FOR YOU. WE WILL SEND THOSE OUT TO YOU THROUGHOUT THE EVENING. DID THE SESSION TWICE FORTY EMPLOYEE LAST WEEK. WE HAD 65 CITY EMPLOYEES SIGN UP FOR IT. IT WAS OPTIONAL BUT THEY WANTED TO LEARN MORE ABOUT CITY BUDGET AND PROPERTY TAXES.

WE HAVE BEEN THROUGH IT A COUPLE OF TIMES AND ADDED SOME ADDITIONAL SLIDES BASED ON THE QUESTIONS THEY HAD.

BUT WE WILL JUMP RIGHT IN AND GET STARTED.

WE WILL START WITH THE HAND OUTS OF ALL THE SLIDE FOR YOU.

SUSAN WILL PARTICIPATE WITH THE PROGRAM AS WELL.

THANK YOU. WHAT BROUGHT YOU OUT TONIGHT.

>> CURIOSITY. >> OK.

ANY OTHER REASONS? >> YEAH I WAS CURIOUS.

>> WE WILL GET INTO THAT. ANY OTHER REASONS THAT BROUGHT

YOU OUT. >> JUST WANTING TO LEARN MORE

[3.1 "Property Taxes and City Budget 101: A Blueprint for Building Community" — City Manager Sarah Campbell will lead the presentation.]

SO I BROKE THE PRESENTATION INTO THREE PIECES.

WE WILL LEARN ABOUT PROPERTY TAXES FIRST.

A LITTLE BIT OF BACK STORY, HOW TO CALCULATE THEM, WHAT IS INVOLVED IN PROPERTY TAXES. AND THEN FROM THERE, WE WILL GO INTO THE CITY BUDGET AND TRY TO MAKE IT A LITTLE BIT EASIER TO UNDERSTAND. CITY BUDGET IS NOT LIKE YOUR PERSONAL CHECKING ACCOUNT. THERE IS A LOT MORE RULES THAT WE ARE BOUND BY AND WE WILL GET INTO THE LEGISLATIVE PROPOSALS, TALK ABOUT WHAT IS GOING ON AT THE STATE LEVEL AND WE DON'T KNOW THE OUTCOME OF THAT YET BUT WHAT WE HAVE SOME GUESSES AS TO WHERE WE MIGHT END UP WITH THE ELECTIONS THIS FALL.

AS FAR AS THAT GOES. SO PROPERTY TAXES IS UP FIRST.

AND WE USE THE WORDS INTERCHANGEABLY, ADVER LORE ROM REVENUE AND SHORTEN TO BE ADDVAL.

PROPERTY TAX, IT'S ALL THE SAME THING.

I WANTED YOU TO HAVE BACKGROUND ON THE TRADITION OF PROPERTY TAXATION DATING A BACK TO 6,000 B.C. IN THE CITY OF LAGASH.

RECORDS BACK TO 3,000 B.C. IN EGYPT AND PAID FOR A LOT OF THE SAME THINGS THAT WE USE IT FOR TODAY.

INFRASTRUCTURE, SOLDIERS, PROTECTION OF THE COMMUNITY, BUILDING PYRAMIDS AND MONUMENTS BUT THE PEOPLE WHO WERE BEING TAXED DID NOT OWN THEIR LAND. THEY WERE BEING TAXED ON AND WHAT THEY PRODUCED SO MUCH LIVESTOCK THEY -- THEY CREATED OR HOW MANY BUSHELS OF WHEAT THEY GREW, THAT TYPE OF THINGS.

OUR PROPERTY TAXES HERE FERNANDINA ARE GOVERNED AT MULTIPLE LEVEL IN. THERE ARE COURT CASES THAT HAVE DETERMINED HOW PROPERTY TAXES ARE LEVY AND APPLIED IN CERTAIN SITUATIONS. AND THEN WE HAVE RULES AT THE COUNTY LEVEL, CITIES, SCHOOL BOARDS AND SPECIAL DISTRICTS.

ESPECIAL DISTRICTS YOU PROBABLY ARE MOST PARTICULAR WITH THE ST. JOHN'S RIVER WATER MANAGE DISTRICT.

THEY CAN ASSESS PROPERTY TAXES. A MOSQUITO CONTROL DISTRICT IS A

[00:05:04]

THEY HAVE TAXING AUTHORITY. THEN ADD VALOREM MEANS ACCORDING TO VALUE. THOEM STEAD EXEMPTIONS WERE ADDED IN THE 1930'S. ANY GUESSES WHAT THAT WAS

CORRELATED WITH? >> THE GREAT DEPRESSION.

THE TRUTH AND MILLAGE ACT. ABOUT TRANSPARENCY IN OUR TAXATION PROCESS. SAVE OUR HOMES WAS APPROVED BY VOTERS IN FLORIDA IN 1994. SENIOR CITIZENS EXEMPTIONS WERE ADDED IN 1999. AND THEN PORTABILITY OF SAVING WAS ADDED IN 2008. WE GO WILL GET INTO THAT IN A MOMENT. THAT THE ABILITY TO TRANSFER PROPERTY TAX SAVINGS WHEN YOU MOVE INTO A NEW HOUSE.

WE WILL LEARN HOW TO CALCULATE PROPERTY TAXES SO GOT HANDOUTS.

DOES ANYONE NEED A PEN? OK.

GOT SOME PENS HERE, TOO. ANYONE ELSE NEED A PEN? IT'S REALLY EASY. YOU ARE ALLOWED TO USE YOUR CELLPHONE. SO PULL OUT THE CALCULATORS.

WHAT WE HAVE ARE THREE DIFFERENT HOUSES SO A SHEET WITH ONE OF THE HOUSES PICTURED. THESE ARE ALL HOUSES IN THE CITY OF FERNANDINA BEACH ON THE MARKET RIGHT NOW.

OK? SO THE FIRST BOX.

BOX NUMBER ONE YOU WILL PUT IN THE ASSESSED VALUE OF YOUR HOMES. SO WHICH EVER HOUSE YOU GOT.

IF YOU GOT THE TWO BEDROOM ONE BATH CONDO, YOUR VALUE IS $227,000. IF YOU GOT THE YELLOW HOUSE WITH THE WRAP-AROUND FRONT POMP, STARTING NUMBER IS $795,000.

AND IF YOU GOT THIS BEAUTY HISTORIC HOME RIGHT HERE ON ASH STREET, YOUR VALUE AND BOX NUMBER ONE IS $2,950,000.

GOT IT? OK.

STEP TWO IS SUBTRACT $50,000. THAT IS THE COUPON FOR OWNING A HOME. IN FLORIDA WE THINK HOMEOWNERS ARE GREAT. YOU GET A COUPON, TAKE $50,000 OFF OF THE VALUE OF YOUR HOUSE. THE BOX NUMBER TWO, IS YOUR TAXABLE VALUE OF YOUR HOUSE. THAT IS WHAT YOU PAY TAXES ON.

AFTER YOUR EXEMPTION IS APPLIED. AND MILLAGE IS ONLY APPLIED TO EVERY 1,000 DOLLARS OF VALUE TO YOUR HOUSE.

BOX TWO, DIVIDE BY $1,000 AND SHOULD END UP WITH YOUR MILLAGE VALUE IN BOX NUMBER THREE. AND THEN THE MILLAGE THIS YEAR IN FERNANDINA AND LAST YEAR IN FERNANDINA, AS WELL, THAT MILLAGE WAS 4.689, TIMED THE NUMBER IN BOX THREE AND THAT SHOULD GIVE YOU THE AMOUNT OF TAX YOU WOULD PAY FOR THE YEAR.

>> HOW IS THE MILL AFTER/* -- HOW IS THE MILLAGE RATE DETERMINED? WE WILL TALKER.

GOT? >> $829.

>> SAME. >>.

OK. >>.

13 AN ON 13,000 ON THE MANSION. U.N. U.N. THIS IS FOR THE SMALL

ONE. >> WHAT WE ARE DEMONSTRATING IS ONE, IT IS REALLY NOT THAT TRICKY TO GET TO THAT NUMBER BUT TWO, EVERYBODY IS RECEIVING THE SAME LEVEL OF CITY SERVICE, RIGHT? WE ARE ALL GOING TO GET POLICE AND FIRE WHEN WE CALL 9-1-1.

WE GO TO THE SAME CITY PARKS, GET CODE ENFORCEMENT IN OUR NEIGHBORHOOD. ALL OF THE THINGS ARE AVAILABLE TO YOU REGARDLESS OF WHAT YOU ARE PAYING IN TAXES.

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THE BASIC IS THAT THERE ARE 50,000 HOMESTEAD XEEXEMPTION.

>> ALL THE DIFFERENT COUPONS THAT ARE AVAILABLE TO YOU.

SO WIDOW AND WIDOWERS, FIRST RESPONDERS, VARIOUS DIFFERENT TYPES OF EXEMPTIONS AVAILABLE TO YOU.

CLICK ON THOSE AND FIND OUT IF YOU QUALIE FOR MORE EXEMPTION.

NEXT UP, A TAX BILL. AND DISSECT THAT IS BIT.

FIRST ONE I WANT IS THIS ONE. THE LADIES ARE PASSING OUT A PROPERTY TAX BILL FROM THE CITY RESIDENT.

>> WE WILL START IN THE LOWER BOXES WHERE IT SAYS TAXING DISTRICTS AND MARKET VALUE ASSESSED VALUE, EXEMPTION AND TAXABLE VALUE. SO THE MARKET VALUE OF THIS HOUSE WITH THE PROPERTY APPRAISER THINKS IT WOULD SELL FOR $690,000 FOR 2025. SO WENT UP A BIT FROM 2024, USED TO BE $666,000. THE ASSESSED VALUE IS IDENTICAL.

MEANING THERE HAVE BEEN NO EXEMPTIONS APPLIED TO IT.

SO IT IS ASSESSED VALUE, $690,000.

NO EXEMPTIONS. SO MAYBE THEY DON'T OWN THEIR HOME. MAYBE THEY ARE NEW.

WE DON'T KNOW WHAT THE SITUATION IS THERE.

BUT THEY WILL PAY TAXES ON THAT FULL $690,000, THAT VERY LAST SET OF BOXES TAXABLE VALUE AND BACK SHEET YOU SHOULD HAVE DEFINITION WHICH EACH OF THE CATEGORIES MEAN.

SO THEN WHEN WE LOOK UP ABOVE WE CAN SEE THAT IN THE BLUE COLUMN, THIS HOMEOWNER IS GOING TO PAY $3,234.16 IN TAXES TO THE CITY FOR THIS YEAR. THEY ARE PAYING OTHER TAXES AS WELL. COUNTY IS THERE.

SPECIAL DISTRICT WE TALKED ABOUT, SO THEIR TOTAL TAX BILL IN THE BOT FEM OF THE BLUE COLIN IS $12,511.85 BUT ONLY $3200 IS COMING BACK TO THE CITY OF FERNANDINA BEACH.

IN COLUMN ONE, THOSE TWO NUMBERS SHOW WHAT THEIR CURRENT YEAR TAX BILL IS. COLUMN THREE IS WHAT NEXT YEAR'S TAX BILL WILL BE. COLUMN TWO IS IF THE TAXING AUTHORITY, THE CITY COMMISSION, WERE TO ADAPT THE ROLL BACK RATE. THAT IS WHAT THE TAXES WOULD GO DOWN TO AND THEY WILL DESCRIBE THE ROLL BACK RATE IN JUST A MINUTE. AND THEN IN THE FAR RIGHT COLUMN IS THE PUBLIC HEARING INFORMATION.

ALL OF THE BUDGET HEARINGS ARE PUBLICLY NOTICED IN YOUR TAX BILL. THEY ARE OPEN TO THE PUBLIC.

WE WANT PEOPLE TO COME. AND GIVE INPUT ABOUT THE CITY BUDGET. ABOUT YOUR TAX RATE.

AND SPECIFICALLY, THE COUNTY, TO THE CITY AND THE SCHOOL BOARD WE CANNOT HAVE OUR HEARING ON THE SAME NIGHT.

SO WE WILL HAVE TO CHECK IN WITH EACH OTHER AND MAKE SURE THAT THE COUNTY HAS FIRST DIBS ON THE DATE.

SCHOOL BOARD HAS SECOND DIBS ON THE DATE AND THE CITIES HAVE TO MAKE SURE WE DON'T CONFLICT WITH EITHER OF THOSE.

AND IT CAN'T BE HELD ANY EARLIER THAN LIKE 5:05:00 P.M.

YES? >> ALL THREE ENTITIES ARE

SEPARATE AND --? >> THEY ARE.

WE DON'T HAVE ANY SAY SO IN WHAT THE RATE THE COUNTY SETS, WHAT THE SCHOOL BOARD SET. EACH OF THE THREE MOVE IN DIFFERENT SEPARATE DIRECTIONS DEPENDING ON WHAT THEY THINK THEY NEED TO RUN THEIR ORGANIZATION FOR THE YEAR.

SO A DIFFERENT TAX BILL, SIMILAR BUT SLIGHTLY DIFFERENT, THESE ARE TWO HOUSES ON THE SAME STREET IN THE CITY OF

[00:15:12]

THE PROPERTY VALUE CAPPED. MOST IT CAN GO UP IS 3% A YEAR.

THEIR ASSESSED VALUE IS $364.# 520 AND HOMESTEAD EXEMPTION, $50,000,SO WHEN YOU GO UP TO THE BLUE COULUMN THEY ARE PAYING $1,470.11 AND IN TOTAL ALL TAXING AUTHORITY ABOUT $5800.

SO ONE OF THE REASONS I WANTED TO SHOW THIS IS NOT ONLY DO WE HAVE THE DIFFERENCES IN THE SIZE OF THE HOME IN WHAT BUT PAY, SMALL, MEDIUM, LARGE, WE HAVE HOUSES WITH THE EXACT SAME VALUE ON THE EXACT SAME STREET BUT ONE OF THEM HAS HAD A LONG TELL PROPERTY OWNER AND OTHER HAD A BRAND-NEW PROPERTY OPENER SO THERE IS DIFFERENCES IN WHAT YOU PAY DEPENDING ON WHAT YOU BOUGHT YOUR HOUSE. ANY QUESTIONS ON THAT?

MAKE SENSE? >> GENERAL IDEA WHAT THE DELTA

IS BETWE-- >> THE FLORIDA LEAGUE OF CITIES HIRED A FORMER STATE ECONOMIST TO RUN SOME NUMBERS FOR THEM.

SO WE HAVE IN THE CITY, SAVE OUR HOMES IMPACTED POST AND PROPERTY IS $1 BILLION, 632... A BIG SAVING.

>> THAT WAS JUST IN THE CITY? >> YEAH.

JUST IN THE CITY. >> YEAH.

$1 BILLION IN SAVE OUR HOMES SAVING.

>> YES? >> WHEN YOU DO THE BUDGET, ANY WAY OF PROJECTING WHEN SOME OF THOSE DOLLARS ROLL BACK TO THE

CITY TRANSFER? >> AS FAR AS SALES? NO WE DON'T REALLY. WE DON'T REALLY.

WE DON'T KNOW HOW MANY PROPERTIES WILL RESET IN ANY GIVEN YEAR. WE GET A LETTER FROM THE COUNTY BY JUNE 1ST THAT TELLS US WHAT OUR ASSESSED VALUE IS FOR THE COMING YEAR. SO THAT IS KIND OF OUR BIG DATE FOR BUDGETING. WHAT THAT LETTER SAYS ON JUNE 1ST IS WHAT WE CAN BUILD OUR BUDGET ON.

WAS THERE ONE BACK HERE? >> YEAH.

CAN YOU EXPLAIN THE ADMINISTRATION OF HOMESTEAD BECAUSE THAT IS -- COUNTY, SNOT C

NOT CITY. >> WHETHER YOU QUALIFY OR NOT.

IF YOU DON'T AGREE WITH THE VALUE OF YOUR HOUSE, ALL SORTS OF THINGS THEY WILL WEIGH IN ON. SO VERY SIMPLY, PROPERTY VALUE, TIMES MILL-AGE RATE EQUALS TAXES.

THIS IS A REAL EXAMPLE, 2024/25, MILLAGE RATE WAS 4.6849, GENERATED $19 MILLION TO THE CITY'S GENERAL FUND.

SO WHAT HAPPENS FOR CURRENT YEARS, THE PROPERTY VALUES WENT UP. MAYBE NEW CONSTRUCTION, MAYBE PEOPLE SOLD, MAYBE APPRAISED VALUE HAS GONE UP A BIT.

NOW OUR PROPERTY VALUE IS $4.# 7 BEEN.

IF WE WERE TO KEEP THE MILLAGE RATE THE SAME, GENERATED 21 MILLION. WHAT WOULD OUR MILLAGE RATE NEED TO GO BACK WARDS TO. SO PROPERTY VALUE, 4.# BILLION AND WANTED TO GENERATE 19 MILLION, 288,000, SAME AS THE PRIOR YEAR, OUR MILLAGE RATE WOULD NEED TO GO DOWN TO 4.3632.

THAT IS WHAT THE ROLL BACK RATE IS TO GENERATE THE SAME AMOUNT OF MONEY AS LAST YEAR. SOME GOVERNMENTS TRY TO ADOPT THAT. IT'S VERY DIFFICULT.

THE COST OF PEOPLE GOES UP. COST OF FUEL GOES UP.

[00:20:03]

HARD TO CONTINUE WITH THE SAME DOLLAR AMOUNT EVERY YEAR.

AND ME PERSONALLY I THINK THERE IS SOME VALVE WE HAVE A GROWING COMMUNITY AND PEOPLE ARE INVESTING IN THE COMMUNITY.

WHY WE COULDN'T INVEST IT BACK TO THE COMMUNITY THERE.

THERE IS THE DEBATE. SOME PLACES GO ZERO.

SOME PLACES DON'T COLLECT PROPERTY TAXES AT ALL.

THE HIGHEST WE CAN GO IS TEN AND WHEN WE HAVE THE BUDGET HEARING, THE CITY COMMISSION HAS A CHART IN FRONT OF THEM THAT TELLS THEM IF THEY GO UP BY "X" PERCENTAGE POINT HOUSE MANY VOTES THEY NEED. SO IF WE GO UP I DON'T KNOW THE NUMBERS OFF THE TOP OF MY HEAD. DO YOU? SIMPLE MAJOR I CANTYTY -- MAJORITY CAN GET YOU TO A CERTAIN MILLENNIUM LANGUAGE VOTE.

YOU CAN'T GO UP FOR US, TO 10 MILLS WITH A SIMPLE MAJORITY OF THREE VOTES. IT IS MUCH MORE RIGHT.

EASY TO UNDERSTAND A LOT OF COMPARE TAVS.

SO PROPERTY TAXES ON AVERAGE, STATEWIDE, RANGE FROM $800 A YEAR TO $10,000 A YEAR. WITH THE MEDIAN BEING JUST UNDER $3,000 A YEAR. AND FLORIDA IS RIGHT AT THAT $3,000 A YEAR MEDIAN PROPERTY TAXES.

THE HIGHEST STATE IS NEW JERSEY AT 9400 A YEAR.

THE LOWEST IS ALABAMA AT ABOUT $890 A YEAR.

SO YOU CAN SEE WE KIND OF FALL I GUESS TO THE MIDPOINT

>> MOVING ONTO THE CITY BUDGET. THE BUDGET IS CHANGING ON A PRETTY REGULAR BASIS. SO WHAT I DID WAS PICK A POINT IN TIME TO GIVE YOU NUMBERS BASED ON IN THE POINT I TIME I PICKED WAS OCTOBER 1, 2025. PAUSE THAT IS WHEN OUR FISCAL YEAR STARTED. SO ALL OF THE DATA WE ARE GIVING YOU ARE BASED ON THE BEGINNING DATE OF THE FISCAL YEAR.

SO FOR OCTOBER 1, OF 25, ALL OF THE FUND TOGETHER TOTALED 240 MILLION. ALL FUND ARE BALANCED.

REQUIRED TO HAVE A BALANCED BUDGET AND HAVE A SURPLUS OF ABOUT $600,000 IN THE GENERAL FUND.

WE REDUCED THE HEAD COUNTS OF ABOUT 17 THROUGH VACANCIES OR PEOPLE RETIRING THAT WE DIDN'T BACK FILL THEIR POSITIONS.

WE CONTINUED A LOT OF CAPITAL PROJECTS, ROAD PROJECTS, BILLING OUT ON ASH STREET, TOTALLING ABOUT $28 MILLION.

THE GENERAL FUND, WE WILL TALK ABOUT WITH THE FUNDS AND HOW WE SEPARATE THEM, WHAT THE GENERAL FUND MEANS BUT THE GENERAL FUND BY ITSELF IS $44 MILLION. AND ALL OF THE PROGRAMS OF THE CITY WERE FUNDED AND RESERVE REQUIR REQUIREMENTS WERE MET. 20% RESERVE IN YOUR GENERAL FUND. SO A MAJOR STORMING SOMETHING GOES WRONG WE HAVE GOT 20% SET ACCEDE TO HELP US FUND TO THAT EMERGENCY. WE HAVE A LOT OF DIFFERENT CATEGORIES OF FUNDS. AND THIS IS AGAIN TOTALS TO $240 MILLION WORTH OF ACCOUNTS BUT THEY ARE BROKEN UP INTO DIFFERENT CATEGORIES. I ASKED TO DESCRIBE THE DIFFERENCES SO YOU CAN UNDERSTAND.

>> THANK YOU. I WILL HAD BEEN EVERYBODY.

I'M SAW SAN, THE -- SUSAN THE CONTROLLER.

I DON'T USUALLY READ HERE IS WHAT FUND ACCOUNTING IS, A SYSTEM THAT USES SEPARATE ACCOUNTS CALLED FUND TO TRACK FINANCIAL RESOURCES AND OBLIGATIONS EACH FUND IS A SELF-BALANCING SET OF ACCOUNTS WE TALKED ABOUT.

THEY ARE BALANCE. THEY RECORD CASH, FINANCIAL RESOURCES ALONG WITH LIABILITIES AND RESIDUAL EQUITIES AND WHY DO WE DO IT? ALLOWS GOVERNMENTS TO MANAGE AND REPORT ON SPECIFIC ACTIVITIES. AND THAT CAN BE BECAUSE IT IS A LEGAL REQUIREMENT, OR SOME TYPE OF REGULATORY REQUIREMENT.

NOW LOOKING AT THE DIFFERENT ONES WE HAVE UP HERE YOU WILL NOTICE THE FIRST AND LARGEST OF OUR OPERATING FUND IS OUR GENERAL FUND. THE GENERAL FUND IS THAT.

[00:25:01]

IT'S WHY WE CHOOSE TO HAVE THE GOVERNMENT HELP US WITH CERTAIN SERVICES. AND WHEN YOU THINK ABOUT THE GENERAL FUND OR THE GOVERNMENT'S CORE SERVICES THEN YOU ARE THINKING OF THINGS THAT TYPICALLY AS A CITIZEN WE CAN'T PROVIDE FOR OURSELF. SO IT IS OUR ROADS.

IT'S OUR POLICE. IT'S OUR FIRE.

IT'S OUR PARKS AND RECREATIONS SYSTEMS. THEY ARE VERY LARGE, VERY EXPENSIVE.

THEY COST A LOT OF MONEY TO DO. AND YOUR AVERAGE CITIZENS OR AVERAGE HOMEOWNERS ASSOCIATION, WILL HAVE A DIFFICULT TIME.

MAYBE THEY CAN DO SOME OF THIS. THEY DON'T DO ALL OF IT.

THAT WILL PROVIDE OUR GENERAL FUND.

THE NEXT ONE WE TALK ABOUT IS SPECIAL REVENUE.

AND THAT IS ONE WHERE THE NAME IS WHAT THAT FUND DOES.

WHEN WE TALK ABOUT SPECIAL REVENUE, REMEMBER THERE A REQUIREMENT, A REGULATION. IT HAS GOT TO BE SOME TYPE OF LAW. SOMETHING REQUIRES US UPTO KEEP UP. A SPECIAL REVENUE FUND.

WE ARE TRACKING THE MUCH WE RECEIVE AND DOCUMENTING FOR REPORTING PURPOSES, EXACTLY EXACTLY WHAT WE DO WITH THIS.

HOW DID WE SPEND IT? HOW MUCH DO WE -- DID WE BORROW AGAINST IT? THOSE TYPES OF ACTIVITY.

AND DEBT, THE KIND OF SEEMS SELF-EXPLANATORY EXEMPTION IF YOU COME FROM PRIVATE INDUSTRY, YOU USUALLY DON'T HAVE A SEPARATE DEBT FUND, RIGHT? AT HOME, I PAY MORTGAGE, MY CAR PAYMENT OUT OF MY BUDGET. FOR THE GOVERNMENT, WE ACTUALLY SET ASIDE A SPECIFIC FUND FOR REPORTING PURPOSES WHERE WE CAN LOOK AND WHEN THE GOVERNMENT THAT REGULATES US, CAN LOOK AND SEE, THAT WE ARE MAKING SURE WE ARE SETTING ASIDE THE MONEY TO PAY THAT DEBT. SO IT IS NOT VERY -- IT IS A SPECIFIC FUND SET ASIDE JUST FOR THAT PURPOSE.

AND WE TALK ABOUT OUR CAPITAL FUNDS.

AT HOME AGAIN, WHEN I BUY SOMETHING MAJOR I DO THAT I DON'T HAVE A WHOLE SEPARATE BUDGET FOR IT BUT HERE WHEN YOU LOOK AT FROM EFFECT > -- PROJECTS THAT ARE MULTIPLE MILLION DOLLAR, MAYBE WE BORROWED SOME, MAYBE WENT OUT LIKE WE DID ONE YEAR FOR CONSERVATION AND HAD MILLAGE PUT ON THE TICKET. ALL OF THAT GETS PUT TOGETHER AND WE WANT TO SEE WHAT MAJOR THINGS DID WE DO? SO WHEN WE TALK ABOUT THAT, THOSE ARE VERY LARGE PURCHASES.

THEY ARE NOT JUST REPLACING A VEHICLE.

THEY ARE DOING A 2.2 MILLION DOLLAR DRAINAGE PROJECT, SOMETHING LIKE THAT. AND WE WANT TO BE TRANSPARENT.

WE WANT TO SHOW WHERE DID THE MONEY COME FROM TO FUND THE PROJECT AND HOW DID WE SPEND IT ON THAT PROJECT? THEN WE LOOK AT ENTERPRISE FUNDS AND ENTERPRISE ARE ALSO CALLED BUSINESS CLASS BECAUSE THEY ARE OPERATED LIKE A BUSINESS.

SO THE CITY HAS SELF-OF THOSE. WE HAVE OUR MARINA, OUR GOLF COURSE, BUT ALSO OUR UTILITIES, OUR ENTERPRISE FUNDS.

THE FEES THEY CHARGE FUND THE OPERATION.

AND THEY FUND IT INCLUDING CAPITAL AND OTHER SOURCES SO IF YOU OWNED A BUSINESS, LIKE SOME PEOPLE IN THE ROOM YOU WOULD HAVE TO SET YOUR PRICES ON THE BUSINESS TO BE ABLE TO PAY FOR THE REPAIRS OF THE KITCHEN, THE REPAIRS OF LET'S SAY YOU HAD A CARE RENTAL BUSINESS TO RUN THE FLEET, ALL OF THOSE THINGS IN ADDITION TO THE THINGS YOU CONSUME AND THE PEOPLE YOU PAY, ARE BUDGETED AND INCLUDED IN THE FEES.

AND INTERNAL SERVICE IS SPECIFIC TO GOVERNMENT.

WE HAVE FUNDS THAT EXIST TO PROVIDE SUPPORT TO THE OPERATIONS. AND THAT IS BECAUSE WHAT WE DO IS SO VARIED. THERE ARE SO MANY DIFFERENT THINGS AND SO COMPLEX AND SO DIFFERENT.

SO WE HAVE A FLEET DEPARTMENT THAT EXISTS.

IT SERVICES OUR POLICE CARS, SERVICE OURS FIRE TRUCKS, ALL OF OUR CITY VEHICLES. AND THEY HAVE A WORK ORDER SYSTEM AND THEY BUILD THE DEPARTMENT FACE WORK FOR.

THAT IS AN EXAMPLE OF AN INTERNAL SERVICE FUND.

AND THEN WE SAVE THE BEST FOR LAST.

PENSION. OUR PENSION FUNDS, IT IS NOT THE CITY'S MONEY ANYMORE WHEN IT IS IN A PENSION FUND.

WE HAVE AN OBLIGATION TO CONTRIBUTE, BASED UPON OUR AGREEMENTS. FOR RETIREMENT TO OUR EMPLOYEES, TO THE PARTICIPANT. WE DON'T OWN THE MONEY BUT WE HAVE A FIDUCIARY RESPONSIBILITY TO MAKE SURE THAT IT IS INVESTED AND THEN IT IS SPENT THE WAY IT SHOULD BE AND EVERYTHING IS HANDLED THE WAY WE NEED IT TO BE TO ENSURE THOSE PENSIONS WILL BE THERE FOR OUR RETIREES. ANYONE HAVE ANY QUESTIONS.

>> WHAT IS AN EXAMPLE OF THE SPECIAL REVENUE FUNDS?

>> PARKING. PAID PARKING.

WE HAVE A CITY ORDINANCE THAT TELLS US WHAT WE CAN CHARGE AND HOW WE CAN SPEND IT. AND ANOTHER ONE WE HAVE A HISTORIC DISTRICT DOWNTOWN AND WE HAVE A COMMUNITY WE

[00:30:03]

SPECIAL REVENUE FUND. >> THANK YOU.

>> DO THE ENTERPRISE FUND OPERATE -- ARE YOU JUST CHARGING ENOUGH TO MAINTAIN AND OPERATE THE MARINA OR ARE YOU

CONSIDERING PROFIT. >> WE DON'T CONSIDER PROFIT LIKE YOU WOULD IN PRIVATE BUSINESS. BUT WE WANT TO HAVE ENOUGH TO HAVE THAT RESERVE SO IF A STORM COMES THROUGH AND HAVE SIGNIFICANT REPAIRS WE HAVE AN OPERATING RESERVE OR RESERVES

THERE THAT WE NEED. >> COULD YOU IF YOU WANTED TO, SAY WE ARE GOING TO OPERATE THE MARINA AT A PROFIT?

OR MAYBE SHOULD YOU? >> YEAH.

SO THIS YEAR THE MARINA AROUND THE GOLF COURSE ARE TWO ENTERPRISE FUNDS THAT WE ARE NOT GENERATING ENOUGH REVENUE TO COVER THEIR EXPENDITURES SO THE GENERAL FUND IS HELPING THE TWO FUNDS THIS YEAR. IDEALLY THEY WOULD BREAK EVENT, WOULD HAVE RESERVES, AND THEN THEY WOULD CONTRIBUTE BACK TO THE GENERAL FUND. SOMETIMES IT IS CALLED A PAYMENT IN LIEU OF TAXES. IN OTHER WORDS IF THAT MARINA WERE PRIVATE OWNED THEY WOULD BE PAYING TAXES AND IF IT WAS PROFITABLE WE COULD TRANSFER THE GENERAL FUND IN PAYMENT IN LIEU OF. WE WILL GET THERE EVENTUALLY.

WE ARE HEADING IN THE RIGHT DIRECTION.

SUSAN, I DID WANT TO ASK YOU, FOR THE AUDIENCE BENEFIT, IN THE DEBT FUND, THE 2.5 MILLION, THAT IS THE TOTAL TO -- IF IT WERE A HOUSE THE VALUE OF THE MORTGAGE PAYMENTS THAT WE ARE GOING TO MAKE THIS YEAR. IT'S IN THE TOTAL THAT WE OWE -- IT'S NOT THE TOTAL THAT WE OWE ON THE HOUSE.

>> THAT CORRECT. >> THAT IS JUST OUR PAYMENTS FOR THIS YEAR ON THE MORTGAGES OR THE DEBT THAT WE HAVE BUT NOT

THE VALUE OF THAT DEBT IN TOTAL. >> OK.

GREAT. THANK YOU.

>> THANK YOU. >> WE WILL BREAK INTO THESE IN A LITTLE BIT MORE DETAIL. IF YOU EXPAND OUT ALL THE COLOR CATEGORY, SPECIAL REVENUE FUNDS IN THE PURPLE HAS A LOT OF SPECIAL REVENUE FUNDS INSIDE OF IT.

SOME OF THE ONES SHE MENTIOED LIKE PAID PARKING, THAT IS NOT IN HERE YET BECAUSE THIS WAS 10.1, BUT THE HISTORIC DISTRICT, TREE FUND. SPECIAL REVENUE FUNDS.

IN THE GREEN IN THE CAPITAL WE HAVE SEVERAL DIFFERENT TYPES OF C CAPITAL FUND, WASTE WATER, STORM AT WATER REGION MARINE THAT. INTERNAL ARE FLEET, UTILITY BILLING UTILITY ADMINISTRATION, AND THEN THE PENSION FUNDS ARE BROKEN DOWN FURTHER INTO THE GENERAL EMPLOYEES PENSION.

AND THE POLICE AND FIRE PENSION. THOSE ARE MANS THAT ARE RUN SEPARATELY, GOVERNED BY SEPARATE BOARDS, INVESTED SEPARATELY.

THAT IS THE MAKE-UP. ABOUT 32 DIFFERENT FUND THAT MAKE UP THE CATEGORIES. THE GENERAL FUND, THE 44 MILLION DOLLAR POT THAT MAKES UP THE GENERAL FUND.

I WANT TO SPEND TIME ON THAT SO YOU UNDERSTAND WHAT IS IN THAT.

OVERALL, IT IS A PORTION OF OUR CITY'S BUDGET BUT IS AN IMPORTANT PIECE. SO IN THE GENERAL FUND YOU HAVE THE ADMINISTRATIVE DUTY OF THE CITY COMMISSION CONCERNING THE CLERK, THE CITY MANAGER THE CITY ATTORNEY, THE FINANCE DEPARTMENT, INFORMATION TECHNOLOGY, HUMAN RESOURCES, THOSE ARE THE TYPES OF THINGS THAT GO INTO THE ADMINISTRATIVE DIVISION AND HAVE THE PUBLIC SAFETY DIVISIONS, POLICE, FIRE, OCEAN RESCUE, BUILDING AND PERMITS IS CONSIDERED PUBLIC SAFETY AND CODE ENFORCEMENT AS WELL.

WE HAVE STREETS, DOWNTOWN, OTHER SERVICES -- THOSE ARE CHARITABLE CONTRIBUTIONS THE CITY DOES MAKE SOME SMALL CHARITABLE CONTRIBUTIONS TO LOCAL NON-PROFITS.

THE CITY OWNS THE LIBRARY BUILDING.

I DON'T KNOW IF EVERYBODY KNOWS THAT.

EVEN THOUGH THE COUNTY RUNS THE OPERATION OF THE LIBRARY.

WE OWN THE FACILITY SO WE ARE RESPONSIBLE FOR THE REPAIR AND MAINTENANCE OF THAT FACILITY. IF AN AIR CONDITIONER GOES OUT WE WILL RE PLACE IT. IF THE BRICKS NEED REPOINTING WE WILL HANDLE THAT. PARKS AND REC IS A HUGE PART OF WHAT WE DO. RECREATION PARK, PET CENTER, M.L.K. CENTER, YOUTH CENTER AND AQUATICS AND TRANSFER, CON TINSY GENERALSY -- CONTINGENCY AND RESERVES.

PRESENTING IT JUST A BIT DIFFERENT VISUALLY.

YOU CAN SEE HOW THINGS ARE COMPILED.

PUBLIC SAFETY IS 40% OF THE GENERAL FUND BUDGET.

THEN WE HAVE GOT GENERAL GOVERNMENT AT 18.

RESERVES 15%. THE 20% DOES NOT NEED TO INCLUDE TRANSFERS IN OR CONTINGENCY SO WE PEEL THE TWO NUMBERS OUT TO CALCULATE THE 20%. WHEN YOU LOOK WITH THE WHOLE IT DOES LOOK LIKE 15%. PARKS AND RECREATION IS 11%.

[00:35:03]

SPENDING A LITTLE BIT OF TIME ON GENERAL FUND REVENUE.

WHERE DOES THE MONEY COME FROM? WE LEARNED ABOUT PROPERTY TAXES AND THAT 21 MILLION DOLLARS THAT WE GENERATED THIS YEAR FROM PROPERTY TAXES IN THE CITY. THAT IS ABOUT 46% OF OUR REVENUE STREAM. SO IT WOULD BASICALLY COVER POLICE AND FIRE. IF THAT IS ALL WE HAD, WE COULD PAY FOR POLICE AND FIRE BUT WE HAVE OTHER REVENUES TO FUND THE REMAINED OTHER IF THE DIVISION. WE HAVE SALES TAX AND FUME TAX, FRANCHISE FEES PERMITS WHEN PEOPLE PAY FOR PERMITS, STATE REVENUE SHARING. GRANTS.

THE RECREATION FEES THAT PEOPLE PAY.

A LOT OF DIFFERENT THINGS THAT MAKE UP THAT REVENUE CATEGORY FOR THE GENERAL FUND. I WANT TO TALK BRIEFLY ABOUT SALE AND FUME TAX FUEL -- SALES AND FUEL TAX.

PEOPLE WILL SAY CITY NEEDS MONEY JUST RAISE THE SALES TAX.

THAT IS NOT HOW IT WORKS. THIS IS THE STATE LOCAL GOVERNMENT REVENUE HANDBOOK. SAYS THE TYPE OF TAXES WE CAN LEVY AND HOW MUCH. SALES TAX IS NOT A CITY TAX.

IT IS SET AT THE COUNTY LEVEL AND THERE ARE MAXIMUMS SO IF THE CROWN CITY IS AT THE MAXIMUM, CAN'T GO UP ANYMORE.

THEY WOULDN'T BE ALLOWED TO GO UP.

SO WE DON'T REGULATE SALES TAX. AND WE DON'T GET WHAT WE EARN.

SO IN OTHER WORDS, IF 99% OF THE SALES TAX WAS GENERATED IN THE CITY OF FERNANDINA BEACH WE DO NOT GET TO KEEP 99% OF THE SALES TAX. THE PORTION THAT COMES BACK TO THE CITY IS BASED ON OUR POPULATION.

COMPARED TO THE WHOLE COUNTY. SO IF WE HAVE 20% OF THE POPULATION, WE ARE GOING TO GET 20% OF THE COUNTY'S POT OF SALES TAX BACK HERE. SO IF THE REST OF THE COUNTY ISN'T GENERATING ANY, THEY ARE NOT CONTRIBUTING TO THE POT, WE DON'T GET AS MUCH, BACK. AND ALSO, AS THE COUNTY GROWS, OUR POPULATION AS A WHOLE IS GOING TO BE SMALLER PROPORTIONALLY. SO MAYBE ONE DAY WE WILL BE 18% OF THE POPULATION. WE WILL GET 18% OF THE HOW MUCH BACK. DID YOU HAVE A QUESTION?

>> THAT IS AN REALLY IMPORTANT ONE.

I LEARNED IT WAS IMPACTFUL. WHEN WE ARE NOT -- A VERY SMALL PORTION OF THAT, THAT NUMBER WILL CONTINUE TO GET SMALLER INSTEAD OF GETTING BIGGER. EVEN THOUGH THE MUCH IS

GENERATED HERE? >> RIGHT.

SO YOU HOPE THAT AS THEY GROW THEY WILL GENERATE MORE SALES TAX IN THE COUNTY AS WELL AND WE WOULD BE ENTITLED TO OUR PORTION OF THAT. BUT YOU DON'T KNOW.

>> WHAT PORTION OF -- [UNCLEAR]

>> I HAVE IT IN HERE. WE ARE 11.9%.

YEAH. SO THE COUNTY GETS 83% OF THE SALES TAX MONEY SO 17 MILLION. WE ARE 11% SO WE GET 2.4 MILLION AND FUEL TAX OR GAS TAX IS SIMILAR.

WE GET A PORTION BACK BASED ON POPULATION.

THE ISSUE WITH FUEL TAX ON A NATIONAL LEVEL REALLY IS THAT THE MORE E.-VEHICLES WE HAVE THAT IS NOT FUELLING AT THE FUEL STATION, THE AMOUNT OF GAS TAX? THE CITY IS GOING DOWN SO WE NEED TO RETHINK THAT SYSTEM TO SOME EXTENT BECAUSE THEY ARE STILL DRIVING ON THE STREET. WE ARE REQUIRED TO SPEND THAT GAS , /* GAS TAX ON STREET AND SIDEWALK. MY HUSBAND DRIVES A ELECTRIC VEHICLE. HE IS CAUSING WEAR AND TEAREN THE SAME STREETS THAT MY BIG TRUCK PAYS A LOT OF TAX INTO.

A DIFFERENT SYSTEM FOR ELECTRIC VEHICLES.

>> THE TOURISM DEVELOPMENT TAX IS A COUNTY RETCH KNEW AS WELL.

IT IS COLLECTED BY THE COUNTY. NOT LISTED THERE IN MY LIST.

WE DON'T GET THAT AUTOMATICALLY. WE CAN APPLY FOR IT IN THE WAY OF GRANTS FOR SPECIAL EVENT PROMOTION.

WE ARE ALSO IN DISCUSSION WITH THE COUNTY FOR SOMETHING CALLED BEACH HARMONIZATION. IF YOU HEARD ABOUT THAN PROJECT.

THEY CAN REINVEST INTO TOURIST DEVELOPMENT AREAS AND PROJECTS.

SO THEY ARE PLANNING TO DO SOME IMPROVEMENTS AT THE CITY BEACHES. USING SOME OF THAT TOURISM DEVELOPMENT MONEY. BUT YOU HAVE TO ASK.

WE ASKED THEM FOR DIFFERENT PROJECTS AND THEY DECLINED SO IT VARIES DEPEND ON WHAT THE COUNTY PRIORITIES ARE.

[00:40:01]

>> BALLPARK, HOW MUCH DO WE GET EACH YEAR?

>> NOT MUCH. IT IS NOT CONSISTENT.

>> REALLY? >> BUT THEY PAY $1 MILLION

FOR -- >> THEY PAY FOR SOME SERVICES.

>> THEY PAY FOR SOME SERVICES. $1 MILLION.

THEY CLEAN THE BATHROOMS. ALONG THE BEACH.

>> TAKE OUT THE GARBAGE ON THE BEACH.

THAT IS THE ENTIRE BEACH. AND BUT THAT IS TAX MONEY.

THEY CONTRIBUTE TO OCEAN RESCUE, A PORTION.

>> THAT IS BEING RENEGOTIATED RIGHT NOW.

THEY WERE CONTRIBUTING $200,000 OF THE $1 MILLION BUDGET.

>> PRIOR TO LAST YEAR, OCEAN RESCUE WAS NOT AN ALLOWABLE EXPENSE. THE LEGISLATURE ADDED IT LAST YEAR SO NOW WE ARE NEGOTIATING THE AGREEMENT WITH NASSAU COUNTY SO THEY WILL PAY A LARGER CONTRIBUTION TO OCEAN RESCUE.

>> WHEN THE POLICE DEPARTMENT WRITES A SPEEDING TICKET DO THINK GET TO KEEP THAT MONEY OR DOES THAT GO INTO --

>> LITTLE BIT. YOU CAN SEE FINES AND FORFEITURES. $36,000 THAT IS SOME AND THAT CAN INCLUDE CODE ENFORCEMENT FINES OR OTHER FINES BUT THE STATE KEEPS THE BULK OF AND THAT.

THE COUNTY GETS SOME. WE GET BACK $2.50 EVERY TICKET.

NOT MUCH. >> SO WHEN THE POLICE DEPARTMENT DOES ITS BUDGET THEY HAVE GOT THE CALCULATE WHAT THEY WILL GET FROM YOU, AND THEY DON'T REALLY FIGURE IN WHAT THEY WILL GET FROM THE SPEEDING TICKET BECAUSE IT --

>> NO. THEY DON'T LOOK AT THE REVENUE SIDE OF THE HOUSE. THEY SUBMIT THEIR HOUSE OF EXPENDITURE AND MY JOB AND SUSAN'S JOB IS TO BALANCE BASED

ON THE REVENUES WE HAVE. >> PAUL?

>> SO WHEN THE TOURISM INDUSTRY B -- AND THE CITY TAKES OWNERSHIP. SAY A PARK.

DOES THE CITY THEN ALLOCATE A BUDGET OF MAINTENANCE TO THE

CYCLE OF THAT >> DEPENDS ON HOW IT IS NEGOTIATE BUT IN THEORY, YES. I CAN'T THINK OF AN EXAMPLE RIGHT NOW HOW THAT WORKS. WE -- LET ME TALK, THE VISITOR CENTRE. THE CITY OWNS THE VISITOR CENTER BUILDING BUT THE TOURISM BUREAU STAFFS IT AND PAYS FOR THE STAFF. BUT IF THERE WERE ANY MAINTENANCE TO THAT FACILITY, THAT WOULD BE THE CITY'S BUDGET.

IS THAT WHAT YOU ARE GETTING AT? >> YEAH.

JUST CURIOUS. THE CITY TAKES OWNERSHIP OF SOMETHING, THE ENTITY -- [UNCLEAR]

>> IT DEPEND. IT DEPENDS.

THERE IS USUALLY AGREEMENT THAT INITIATES THAT DECISION AND IF THE AGREEMENT INCLUDES MAINTENANCE, THEN IT WOULD BE ALLOWED. JUST DEPENDS ON HOW IT WAS

STARTED. >> SO THE CITY CAN NEGOTIATE?

>> POTENTIALLY, YEAH. IF THE -- GOT TO HAVE TWO WILLING PARTNERS. GREAT QUESTIONS.

THANKS, EVERYBODY. BREAKING THE CATEGORIES OUT FURTHER YOU CAN SEE JUST A BIT MORE DETAIL, 76 DIFFERENT REVENUE LINES THAT MAKE UP THE BROAD CATEGORIES OF REVENUE.

OK. LEGISLATIVE PROPOSALS.

SO LET ME TALK A BIT ABOUT THE HOUSE AND SENATE.

HOW IT IS STRUCTURED, THE FLORIDA HOUSE, IS MADE UP OF 120 MEMBERS. THEY SERVE TWO YEAR TERMS. AND THEY ARE CONSIDERED SORT OF THE ROADTY BUNCH.

THEY DO THINGS A BIT MORE RADICAL.

A LITTLE MORE WILD. LESS RULES.

IT IS A LITTLE LIKE MAYHEM IN THE HOUSE.

ON THE SENATE SIDE, THERE ARE 40 MEMBERS.

THEY ARE ELECTED TO FOUR-YEAR TERMS. THEY ARE CONSIDERED THE UPPER HOUSE.

THEY ARE MORE RESERVED. THEY ARE MORE RULEBOUND, LESS RISKY IN THEIR PROPOSALS. RIGHT NOW THEY ARE BOTH REPUBLICAN CONTROLLED BUT THAT IS THE DYNAMIC DIFFERENCE BETWEEN THE TWO HOUSES. YOU HAVE THE GOVERNOR WHO HAS PRIORITIES. HOUSE OR SENATE MAY TAKE THEM UP, MAY NOT. HE HAS TO SIGN THEIR BUDGET AND SO THEY WANT THEIR PROJECTS FUNDED, SOMETIMES THEY NEED TO KIND OF GO ALONG WITH WHAT THE GOVERNOR'S PRIORITIES ARE OR FACE THEIR PROJECTS GETTING VETOED.

SO THE GOVERNOR SAID OUT A PRIORITY LAST YEARS, TO ELIMINATE PROPERTY TAXES IN THE STATE AND THE FLORIDA HOUSE -- WAIT, LET ME BACK UP. THIS IS A DIFFERENT ONE.

HOUSE BILL 1329 IS A BILL ABOUT TRANSPARENCY IN BUDGETS.

WE ALREADY HAVE THE TRIM PROCESS.

THE TRUTH AND MILLAGE THAT REQUIRES THE PUBLIC HEARINGS TO BE NOTICED IN THE PAPER AND THE PUBLIC IS WELCOME TO COME.

THIS TAKES IT A STEP FURTHER. IT PASSED IN THE HOUSE.

IT PASSED IN THE SENATE. WE ARE WAITING FOR THE GOVERNOR TO SIGN IT. LAST CHECK HE HAD NOT SIGNED PIT

[00:45:03]

SO WE WILL COME TO THAT PUBLIC HEARING AND SAY, HERE IS A PROPOSED BUDGET WE THINK WE NEED BUT HERE IS THE WHAT THE BUDGET WOULD LOOK LIKE IF WE CUT IT BY 10%.

DOESN'T REQUIRE THE CITY COMMISSION TO DO ANYTHING.

BUT WE HAVE TO AT LEAST PRESENT THE OPTION.

OF HERE IS WHAT IS BUDGET WOULD LOOK LIKE IF IT WAS 10% SMALLER SO IF THE GOVERNOR SIGNS THIS, THIS WILL GO INTO EFFECT EFFECT IN JANUARY SO NEXT YEAR DURING THE BUDGET PROCESS WE WOULD PRESENT AN ALTERNATIVE BUDGET WITH 10% REDUCTION TO IT.

>> SO OCTOBER OF 2026. >> SO IN THE AUGUST, SEPTEMBER OF 27 WINDOW WHEN WE HAVE OUR WORKSHOPS IS WHEN WE WOULD DO THAT PRESENTATION. HOUSE BILL 203 ABOUT PROPERTY TAXES IN GENERAL. SO THE HOUSE OF REPRESENTATIVES STARTED WITH EIGHT IDEAS. BASED ON THE GOVERNOR'S IDEA, THEY CAME UP. WITH 8 DIFFERENT IDEAS.

THEY RAN THE GAMUT OF COMPLETE ELIMINATION, MAYBE EXTRA HOMESTEAD EXEMPTIONS, COULD BE ANYTHING.

ONE OF THE THEM WAS THE PHASE OUT PROPERTY TAXES OVER TEN YEARS. EVERY YEAR YOUR VALUE OF YOUR HOUSE WOULD GO DOWN BY $100,000. AND IN THE 10TH YEAR, THERE WILL BE NO PROPERTY TAXES LEFT. ULTIMATELY, THEY CAME UP WITH THE BILL, HOUSE BILL 203 TO COME MEETLY ELIMINATE ALL HOMESTEADED PROPERTY TAXES. SO IF YOU OWN YOUR HOME, YOUR TAXES WILL GO AWAY COMPLETELY. NOW IF YOU'RE A TENANT, IF IT IS A SECOND HOME OR THIRD HOME OR BUSINESS, DOESN'T APPLY TO YOU YOU WOULD STILL HAVE TO PAY TAXES BUT IF

>> OWN YOUR HOME YOUR BILL WOULD GO AWAY.

BUT FIRST, THEY FROZE FIRST RESPONDER BUDGETS.

THEY SAID, CITIES YOU CANNOT CUT THE BUDGETS OF POLICE AND FIRE.

THESE ARE CRITICAL SERVICES. SO EVEN IF THIS BILL PASSES, YOU CANNOT SPEND LESS ON POLICE AND FIRE THAN THIS YEAR.

YOUR BUDGETS ARE FROZEN. THEY CAN'T GO DOWN.

FOR POLICE AND FIRE. THE HOUSE HAS NOT -- THE HOUSE APPROVED THIS. THE SENATE HAS NOT.

THEY BOTH HAVE TO MATCH AND AGREE BEFORE IT CAN GO TO THE GOVERNOR AND THEN IT WOULD GO ON THE BALLOT FOR ALL OF US TO VOTE ON IN NOVEMBER. SO FAR THE SENATE HAS NOT AGREED. SAID THIS WON'T WORK.

WE DON'T LIKE IT. THEY HAVE TO COME BACK FOR SPECIAL SETTINGS THIS SUMMER TO RESOLVE THIS ISSUE.

THE GOVERNOR HAS NOT SIGNED THEIR BUDGET YET.

THERE IS STILL A LOT THAT WILL PLAY OUT THIS SUMMER ON THIS ISSUE. THE CONVERSATIONS THAT I HAVE HAD WITH SOME FOLKS IN TALLAHASSEE IS THAT THE SENATE IS JUST LEANING TO INCREASING THE HOMESTEAD EXEMPTION TO MAYBE $100,000 INSTEAD OF $50,000. BUT AGAIN, BOTH HOUSES HAVE TO AGREE IN ORDER FOR SOMETHING TO BE PRESENTED TO THE GOVERNOR.

>> DO EITHER OF THE BILLS.

[UNCLEAR] >> NO, MA'AM, THEY DON'T.

THAT IS A GOOD QUESTION. AND SOME LEGISLATORS THAT I TALKED TO SAID TELL ME YOUR IDEAS.

WHERE SHOULD THE MUCH COME FROM IN WELL, IN TAX? WHAT ARE WE TALKING ABOUT? HOW WOULD WE MAKE UP THE DUNCE DIFFERENCE? IT IS AN INTERESEOH INTERESTING SCENARIO. -- IT IS INTERESTING SCENARIO.

>> ONLY TALKING ABOUT THE GENERAL FUND WHICH HAS 45 MILLION IN REVENUE AND IF WE ELIMINATE HOMESTEAD TAXES WE WOULD GO DOWN ABOUT 10 MILLION DOLLARS IN REVENUE.

10.8 MILLION IN REF NEWSPAPER SO THAT LEAVES US WITH 34 MILLION DOLLARS TO RUN THE GENERAL FUND. ON THE EXPENSE SIDE OF THE HOUSE, EXPENDITURES ARE 44 MILLI AND /* PP MILLION -- INSTEAD OF 27 MILLION WE HAVE TO SPED ON EVERYTHING ELSE WE WOULD ONLY HAVE 17.3 MILLION TO SPEND ON EVERYTHING ELSE.

SO AGAIN IT WOULD BE A 10 MILLION DOLLAR REDUCTION TO EVERYTHING BUT POLICE AND FIRE. THIS IS EVERYTHING BUT POLICE AND FIRE SO IT IS ALL OF THE ADMINISTRATIVE DEPARTMENT,

[00:50:08]

ALL WOULD HAVE TO BE REDUCED BY 38%.

AND I HAVEN'T SUGGESTED TO THE COMMISSION IF THAT IS 38% ACROSS THE BOARD OR WHETHER IT DOESN'T MAKE SENSE TO ELIMINATE SOME OF THE LARGER SERVICES AND TRY TO GET 38% FROM ONE BIG CATEGORY.

WE HAVEN'T GOTTEN THAT FAR UNTIL WE KNOW REALLY WHAT THE BILL

WOULD LOOK LIKE. >> THAT WAS JUST WITH THE HOMESTEAD -- TOTALLY TAKEN OUT ON PROPERTY TAXES.

>> TOTALLY TAKING OUT ALL PROPERTY TAXES THE DEPARTMENT HAVE TO GO DOWN TO 75%. WE RAN THE NUMBERS JUST PAUSE WE WEREN'T SURE WHAT KIND OF BILL WOULD PASS.

BUT HONESTLY I DON'T FAULT POLICE AND FIRE FOR LOBBYING THEIR CORE SERVICES. IF WE HAD TO START SLICING AWAY AT WHAT WE WANT TO KEEP IN THE CITY, POLICE AND FIRE IS THE CORE OF WHAT WE WANT TO KEEP. BUT I DON'T THINK IT IS GOOD FOR THEM EITHER. BECAUSE IF I SAY SORRY, CHIEF YOUR BUDGETS ARE FROZEN AT 17 MILLION.

THEY DON'T GET ANY NEW CARS. THEY DON'T GET ANY RAISES.

THEY DON'T GET ANY NEW EQUIPMENT.

IT IS BAD FOR THEM, TOO. THEY ARE LOCKED INTO THAT NUMBER IN A LONG TIME. SO THE NEXT STEP WE WILL HAVE SOME SUMMER SPECIAL SESSIONS WITH THE LEGISLATURE, BOTH THE HOUSE AND SENATE WILL HAVE TO AGREE.

PLACED ON THE BALLOT FOR ALL OF US TO VOTE ON IN NOVEMBER.

ONCE SOMETHING IS MACED ON THE BILLION LOT, LOCAL GOVERNMENTS CANNOT EXPEND ANY MONEY ON LOBBYING.

WE CAN'T LOBBY FOR OR AGAINST CITY INITIATIVE OR BALLOT MEASURES SO WE ARE HAVING CONVERSATIONS RIGHT NOW TO INFORM VOTER SO YOU KNOW IN CASE, IN NOVEMBER, KIND OF WHAT OUR BACKGROUND IS. IT REQUIRES 60% APPROVAL.

THEN THE LEGISLATURE WOULD RECONVENE IN THE SPRING 2027 TO CREATE THE IMPLEMENTING LEGISLATION.

HOW WILL THEY PUT IT INTO MACE AND ROLL IT OUT.

THIS WOULDN'T AFFECT US UNTIL FISCAL YEAR 27/28.

OK? THESE ARE JUST SOME OTHER GRAPHICS FROM VISUAL CAPITALS ABOUT FLORIDA AND HOW WE COMPARE TO OTHER STATE. WE LIVE HERE.

WE KNOW WE DON'T HAVE INCOME TAX.

THERE ARE A HANDFUL OF STATES THAT DON'T HAVE INCOME TAX.

THE HIGHEST IS 13.3% AND THAT IS CALIFORNIA.

INCOME GROWTH, HOW MUCH OUR INCOME HAS GROWN FROM 2010 TO 2024, FLORIDA IS AT 23%. THE U.S. AVERAGE IS 22%.

SO WE ARE ABOVE HAAVERAGE. MONTANA HAS GROWN 42.9%.

WE HAVE TO CONSIDER POPULATION CHANG.

THE PEOPLE ARE MOVING AROUND THE COUNTRY.

FLORIDA HAS GROWN 8.2% FROM 2020 TO 2025.

THAT IS NUMBER TWO. IDAHO IS NUMBER ONE, FLORIDA IS NUMBER TWO AT 8% GROWTH. WHERE IS THE WEALTH MOVING? IT IS MOVING TO FLORIDA. 21 BILLION DOLLARS IN REHABILITATE MIGRATION TO OUR GREAT STATE.

MINUS 12 BILLION IN CALIFORNIA. MINES 10 BILLION IN NEW YORK.

-- MINUS 10 UNTIL IN NEW YORK. WE KNOW WHERE THEY WENT.

I LOOKLIKE TO PUT IN PERSPECTIVE WHERE FLORIDA FITS IN WORLD.

FLORIDA IS A WORLD ECONOMY. WHEN YOU START COMPARING US TO OTHER NATIONS. FLORIDA'S ECONOMY, 14TH IN THE WORLD. RIGHT THERE WITH WHAT IS THAT MEXICO, SPAIN, AND I DON'T KNOW THE RED AND WHITE ONE? MAYBE POLAND. THIS IS A DIFFERENT CHART SIMILAR INFORMATION PUTS US 19TH NEAR SPAIN AND INDONESIA.

REGARDLESS WE ARE A TOP 20 ECONOMY IN THE WORLD SO WHAT IS HAPPENING IN FLORIDA IS A BIG DEAL IN THE WORLD.

ALL OF THIS IS AVAILABLE TO YOU, ALL OF MY RESOURCES ARE AVAILABLE TO YOU, THESE ARE SOME OF THE PLACES THAT I PULLED INFORMATION FROM. THE PROPERTY APPRAISER'S WEBSITE. THE CITY'S WEBSITE.

OUR CITY BUDGET IS VERY TRANSPARENT.

IT IS AVAILABLE ON THE CITY WEBSITE AND WE GO BACK FIVE YEARS OF CITY BUDGETS ON THE CITY WEBSITE.

WE ALSO HAVE OUR FIVE YEAR CAPITAL IMPROVEMENT PLAN, EVERYTHING WE PLAN TO BUILD OR BUY, THAT IS SIGNIFICANT FOR THE

[00:55:05]

THIS IS A VIDEO. I WON'T PLAY IT FOR YOU BUT ON THAT FLORIDA LEAGUE OF CITY WEB PAGE, THERE'S A VIDEO ABOUT THE FLORIDA FORMULA. AND YOU CAN WATCH THAT VIDEO THROUGH THEIR WEBSITE. I DO HAVE SOME INFORMATION PACKETS FOR YOU THAT THE FLORIDA LEAGUE OF CITIES CREATED ABOUT THE CITY OF FERNANDINA BEACH AND OTHER CITIES.

I HAVE GIVEN YOU THE FERNANDINA ONE.

ON THE WEBSITE, YOU CAN COMPARE TO OTHER ANY OTHER CITY AND STATE. THEY HAVE GOT YELLOW PINS FOR THE OTHER CITIES AND YOU CAN SEE HOW OUR SPENDING AND OUR REVENUE COMPARES TO OTHER CITIES IN FLORIDA.

>> E. >> THANK YOU SO MUCH FOR DOING

THIS. >> YEAH.

>> QUESTION FOR YOU. ON THE FLIP SIDE, WHEN YOU SEE 38%, POLICE -- [UNCLEAR] THE MIGRATION, POPULATION AND THEN THE WEALTH, AND I WOULD ASSUME THAT MANY OF THOSE PEOPLE HAVE -- THIS IS THEIR SECOND HOME AND THEY ARE NOT GETTING HOMESTEAD.

SO I ASSUME THAT PART OF THE BUDGETING YOU SAY, OK, WHO IS COMING HERE? AND THEY ARE PROBABLY BUYING A

SECOND HOME? >> IT IS HARD BECAUSE WE DON'T GET OUR ASSESSED VALUE BROKEN OUT FROM THE COUNTY BY COMMERCIAL, BY HOMESTEAD, BY NONHOMESTEAD SO WE DON'T KNOW WHAT IS IN THE MIX. SO IT IS HARD TO PREDICT.

>> THEY KNOW THE POPULATION. YOU MOVE HERE AND DON'T REGISTER YOUR CAR OR LICENSE. I IMAGINE THAT WILL BE HUGE.

>> THE OTHER PIECE OF THE -- 3% -- COMMERCIAL CAPPED AT 10%.

THEY HAVE SOME SAVINGS. COMMERCIAL IS CAPPED AT 10% GROWTH IN THEIR PROPERTY VALUE AS WELL.

THE ONLY ONE THAT IS COMPLETELY UNPROTECTED IS NON-HOMESTEAD RESIDENTIAL PROPERTIES. THAT GETS TACKED ONTO THE TENANT

OR RENTER. >> SHEILA?

>> WOULD YOU TALK A BIT ABOUT -- I HEAR PEOPLE COMPLAINING ABOUT THEY THINK THE NUMBER OF STAFF THAT THE CITY HAS AND WHAT WE -- 13,000 PEOPLE, BUT WE HAVE 100,000 PEOPLE IN THE COUNTY WHO

LIVE IN CLOSE FOR EPROXIMITY. >> THIS IS THE SECOND CITY I

WORK -- >> OK THE QUESTION WAS ABOUT OUR STAFFING LEVELS, COMPARED TO POPULATION AND THE COUNTY POPULATION. SO EVERY CITY DIFFERENT ABOUT WITHIN THEY THINK IS VALUABLE AND WHAT THEY WANT TO PAY FOR.

IT IS PART OF THE SYSTEM OF HOME RULE AND THAT WE GET TO DECIDE HOW MUCH TAXES WE WANT TO LEVY AND WHAT SERVICES WE WANT TO HAVE. SO THE LAST PLACE I WAS AT DIDN'T HAVE A MARINA. OR A GOLF COURSE OR AN AIRPORT.

OR AN ARBORIST OR YOU KNOW, THERE ARE SOME AMENITIES THAT WE HAVE IN FERNANDINA THAT ARE NICE TO HAVE.

THE CITY HAS DECIDED THESE ARE PRIORITIES FOR US AND WE ARE WILLING TO PAY FOR THEM. CAN YOU RUN A CITY WITH LESS? SURE. SURE.

WE CAN RUN A CITY WITH LESS AND I PRESENTED A HANDFUL OF OPTIONS TO THE COMMISSION LAST FALL ABOUT, WELL IF YOU WANTED TO MAKE CUTS, I HAVE SOME SUGGESTIONS WHERE YOU WOULD START. BUT THEY DIDN'T WANT TO CONSIDER THAT. THEY WANTED TO CONTINUE WITH THE CURRENT LEVEL OF SERVICE THAT WE HAVE.

I THINK IT IS IMPORTANT TO CONSIDER THAT THE OVER 1 MILLION TOURISTS A YEARS, I HEARD 1.2 TO 1.8 MILLION TOURISTS A YEAR THAT VISIT THE ISLAND ARE TAKING SERVICE THE FROM THE CITY THAT ARE CITY OF 14,000 WOULDN'T NORMALLY PROVIDE.

WE WOULDN'T HAVE A 1 MILLION DOLLAR OCEAN RESCUE FOR A CITY OF 14,000. WE ARE DOING THAT BECAUSE WE HAVE LOT OF TOURISTS THAT COME. THE POLICE STAFFING IS BIGGER THAN A CITY OF 14,000. BUT NOBODY ELSE HAS THE PALACE SALOON. WE GOT TO TAKE CARE OF WHAT IS GOING ON HERE. RICHARD, DID YOU HAVE ONE?

>> THAT WAS SIMILAR TRACK. IN TERMS OF THE DEMANDS UPON THE CITY ARE DIFFERENT THAN THOSE COMPARISONS LEAVE OUT A LOT.

[01:00:06]

WHO DON'T REALLY CONTRIBUTE. >> THAT IS POINT OF CONTENTION IN A LOT OF PLACES THAT HAPPENED AT MY LAST PLACE WHERE YOU HAD POPULAR CITY PARKS THAT THE CITY WAS VERY AGGRESSIVE AND WANTING TO FUND A PARK AT A REALLY NICE LEVEL.

AND IT BECOMES AN ATTRACTER FOR PEOPLE THAT DON'T LIVE THERE.

BECOMES A REGIONAL ATTRACTION AND SOMETIMES THE TRAFFIC GOES BOTH WAYS BUT NOT ALWAYS CONSISTENT.

THANK YOU ALL FOR YOUR TIME TONIGHT.

ME AND THE ENTIRE STAFF ARE RESOURCES FOR YOU.

IF YOU CAN'T FIND US, THROUGH DIGITAL MEANS YOU CAN ALWAYS CALL US OR E-MAIL US AND WE WILL TRY TO POINT YOU IN THE RIGHT DIRECTION OR ANSWER QUESTIONS. I HOPE THIS HAS BEEN WILL HELPFUL AND AGAIN, JUST THANK YOU FOR YOUR TIME TONIGHT.

APPRECIATE IT.

>> THANK YOU. >> THANK

* This transcript was compiled from uncorrected Closed Captioning.