Submitted by Suanne Z. Thamm
Reporter – News Analyst
January 4, 2016 1:00 a.m.
Editor’s Note: We’re back! After a restful, fun filled holiday season, the Fernandina Observer staff is ready to go. We look forward to continuing our tradition of providing news and information with a focus on the City of Fernandina Beach and issues that impact our community. Happy New Year to all, and thank you for your continued support.
Nassau County commissioners and Fernandina Beach commissioners ended 2015 by unanimously approving their respective ordinances to create a special taxing district on Amelia Island to pay for periodic beach renourishment. No rate has been set yet for the tax, which could be levied on residents of the city and some unincorporated areas of Amelia Island in 2016.
The so-called “sand tax” will cover beach renourishment efforts for the Atlantic beaches of the island located between Fort Clinch and the those properties within the South Amelia Island Shore Stabilization Municipal Service Benefit Unit (SAISSA). Since SAISSA properties fund their own beach renourishment efforts via special assessments, the new taxing unit does not cover them.
Beach renourishment efforts are not required annually. By establishing the special taxing unit, local government can begin to fund a dedicated revenue source for local government’s share of renourishment costs, which amounts to ten percent of the total cost. The creation of the special taxing unit does not necessarily mean that the tax will be collected each year.
By jointly agreeing to the creation of this special taxing unit, the county and the city appear to have set aside past differences over cost sharing of the required ten percent match for federal and state monies that fund most of the renourishment efforts. The tax rate will not be set until millage rates are set for the next year.
Nassau County approves MSTU 3-0 on December 28
The Nassau County Board of County Commissioners (BOCC) barely mustered a quorum for their December 28, 2015 meeting. But to both the relief of some and displeasure of others in the audience, the BOCC considered and passed on a 3-0 vote a county ordinance creating the Amelia Island Beach Renourishment Municipal Service Taxing Unit (MSTU) for the entire unincorporated area of Nassau County lying on Amelia Island and all incorporated areas of the City of Fernandina Beach, but not including those properties within the South Amelia Island Shore Stabilization Municipal Service Benefit Unit (SAISSA).
County Commissioners Steve Kelley (District 2), George Spicer (District 4) and Board Chair Pat Edwards (District 3) all supported the measure. Commissioner Danny Leeper (District 1) was not in attendance; nor was Commissioner Walter “Junior” Boatright (District 5), who was recovering from major surgery.
In considering the matter county administrator Ted Selby advised commissioners that no changes had been made to the draft that had been finalized at the December 21 Joint Local Planning Agency meeting that drew discussion and agreement from Fernandina Beach commissioners. Commissioner Spicer asked if the proposed MSTU was a way to collect taxes from the City of Fernandina Beach. Selby said it was. County Attorney Mike Mullin clarified that residents of the unincorporated area on Amelia Island, excluding those already paying for beach renourishment under SAISSA, would also be taxed to support beach renourishment. But that the proposed tax would be limited to Amelia Island property and the money collected would be dedicated solely to beach renourishment.
Five audience members addressed the commission on the proposed MSTU. A Bailey Road resident objected to a beach tax being levied on non-city residents, saying, “I could care less about going to the beach.” Another island resident asked if the BOCC had explored other options before resorting to the proposed tax. She expressed her belief that the beach users, many of whom are not island or county residents, could be tapped to fund this activity, along with the Tourist Development Council (TDC).
Attorney Mullin reminded speakers and the commissioners that the tax is to protect the property, not improve the experience for beach users. He said that by keeping the beaches renourished, the entire island and county are better protected in case of a catastrophic storm. A Yulee resident spoke in agreement with Mullin.
Commissioner Kelley responded to some of the items raised, explaining that state constraints limit how much money collected from bed taxes may be spent on beach renourishment.
Gil Langley, TDC Executive Director, explained that in 1988 county voters had authorized the collection of a “bed tax” and limited to ten percent the amount that would be held in a reserve fund to help restore the beaches in the event of a catastrophic storm. He said that currently that fund contains $1.7M. He added that the TDC annually funds beach maintenance costs along the entire island from the southern boundary of Fort Clinch to the northern boundary of the south end state park.
Fernandina Beach City Commissioner Len Kreger also spoke, reminding the audience that the federal government pays 80 percent of the cost of beach renourishment and the state picks up an additional ten percent. The U.S. Navy also contributes to the beach renourishment efforts. The proposed MSTU covers the remaining ten percent. Because of the tax money contributed by the federal government and the state, Kreger said that people who do not live on Amelia Island cover the bulk of the cost.
Kelley moved approval and Spicer seconded. Edwards joined in the unanimous vote.
Fernandina Beach approves MSTU 5-0 on December 31
During a special meeting that lasted five minutes, the Fernandina Beach City Commission (FBCC) passed on fourth reading Ordinance 2015-34, an ordinance consenting to the county’s levying of a special tax within the city limits to support beach renourishment efforts. Passing this ordinance means that the city will no longer need to budget for beach renourishment efforts out of its General Fund.
In presenting the item for FBCC consideration, City Attorney Tammi Bach informed commissioners that the ordinance before them had incorporated the language agreed upon during the JLPA meeting and had been approved via county ordinance on December 28. She said that the city must annually consent to the levying of this tax. Such consent will be assumed unless the city notifies the county by March 1 of any given year that it intends to opt out.
There was no public discussion.
Commissioner Len Kreger, who had attended the BOCC meeting on December 28, emphasized the city’s need to be up front about planning for beach renourishment efforts, stating that the city, not the county, is the driving force in these efforts. He added that Eric Olson, the city’s beach renourishment consultant, will address the FBCC during its February 16, 2016 meeting.
Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.
Happy New Year to all at the FO. Looking forward to continued great reporting, opinions and photos in 2016.
A LTE has been submitted to the FBNL addressing this unjust and capricious tax. Note Mullen’s remarks re who really benefits and the ludicrous suggestion that beach renourishment will protect the entire county from a hurricane, yet only island residents will be taxed! And what of emergency renourishment following a hurricane impact? That last occurred in 1964 folks! We are being fleeced by tourist-dependent “bitness” and the TDC.
Patrick,
As I have noted in earlier posts, I agree with you that all Nassau County property owners benefit from the beaches and should be taxed. It was what happened with the funding of the first renourishment costs.
I would suggest that Mullen was referring to financial protection of the entire county with regards to a hurricane. Amelia Island properties contribute almost two-thirds (62%) of the County’s ad valorem revenue so if the Island’s economy is wrecked by a major storm it will have a major impact on the Island and the County overall. The $1.7 million reserve collected over the years from the bed tax is a legitimate reserve.
Do you have some special powers that can guarantee that the Island won’t be hit by another such storm within the next decade or generation? Or are you willing to put up a $2 million letter of guarantee to cover the costs of renourishment if it is? I suspect not.
If and when another hurricane strikes Amelia (catastrophic or otherwise) the beach will serve NO function to prevent or “mitigate” a STORM SURGE impacting the entire island, marshes, county river courses and mainland shorelines. Furthermore, the sandy beach will in no way mitigate damage from hurricane winds, spawned tornadoes or torrential rains. And should a hurricane-impacted beach be “damaged” both federal and state would declare an emergency and fund a major renourishment project. Were you here following Dora? Conversely, adjoining Cumberland Island National Seashore and the Talbot Islands would be equally impacted but not “restored” by any taxes.
Chanel 12 news reports:
St. Augustine Beach renourishment could happen sooner
Talking about money, according to the Army Corps of Engineers, this upcoming project could cost $10 – $20 million. St. Johns County expect it’s portion would be roughly $1.5 million.
“That would be TDC (Tourism Development Council) funding that comes primarily from tourists and bed tax,” Ryan noted. “It will also be split with state funding, but 80% will come from the federal government.”