Fernandina Beach workshop lays out budget risks if Amendment 3 passes

Ms. Campbell, the city manager, opened the Sept. 1 workshop with a data‑driven briefing on the likely local impact if the legislature’s referred Amendment 3 passes on Nov. 3. She summarized the ballot language as increasing homestead exemptions, phasing smaller exemptions for new residents, capping non‑homestead valuation growth at 5% annually and listing where property taxes may be spent. "Because this is a constitutional amendment, it would require 61% voter approval to pass," Ms. Campbell said.

Using draft FY projections, Ms. Campbell told the commission that the city’s General Fund is projected at about $49.7 million, with roughly $23 million (about 47%) coming from property taxes. Citing an 18‑page memo from the Florida Department of Revenue, she said state estimates show ad valorem collections dropping from about $22 million to about $15 million over five years — a roughly 31% decline in property‑tax collections — which she translated into an illustrative $7 million reduction in General Fund resources over that period. "So over that 5 year period, a 31% reduction in property tax collections, going from 22,000,000 down to 15,000,000 in property taxes by the the 5th year," she said. The presentation emphasized these are projections and that local property‑value growth, millage decisions and other factors could change outcomes.

The briefing identified three city funds that would be directly affected — the General Fund, the Community Redevelopment Area (CRA/TIF) fund and the Capital Fund — and noted most enterprise, pension and debt service funds would not be directly altered. Ms. Campbell recommended the commission consider revenue options and strategic, sustained expenditure reductions rather than one‑time fixes, and reminded commissioners that more detailed budget hearings are scheduled for Sept. 3 and Sept. 15, with the election on Nov. 3.