September 10, 2026

FERNANDINA BEACH EXTENDS 8-YEAR PENSION BONUS WHILE TAXPAYERS FACE A $117 MILLION DROP EXPOSURE AND A $3.59 MILLION ANNUAL CITY PENSION BILL

FERNANDINA BEACH EXTENDS 8-YEAR PENSION BONUS WHILE TAXPAYERS FACE A $117 MILLION DROP EXPOSURE AND A $3.59 MILLION ANNUAL CITY PENSION BILL

Official Public Records Request PRR 2026-333 shows a $3.59 million yearly city contribution to two elite, stand-alone municipal pension plans. Taxpayer advocates urge an immediate shift to a private-sector 401(k) before 219 active employees can enter the expanded 8-year pension bonous program.

FERNANDINA BEACH, FL — A forensic review released today by TripleDippers.org shows Fernandina Beach rejected Florida Retirement System participation and kept two elite, stand-alone defined-benefit plans. On October 17, 2023, the City Commission passed Ordinances 2023-34 and 2023-35, effective retroactively to July 1, 2023, expanding Deferred Retirement Option Program (DROP) participation from 5 years (60 months) to 8 years (96 months) and increasing pension bonus accural to a 4%.

That is a 60% longer pension-bonus increase. About 85% of private-sector workers in the United States have no traditional defined-benefit pension. Workers who do have a 401(k) typically receive about a 4% employer match. Fernandina Beach property owners, by contrast, fund city pension contributions equal to 20.79% of general-employee pay and 29.37% of police-and-fire pay—on top of the employee’s own 6.5% or 7.7% payroll deduction. Foster & Foster’s October 1, 2024 valuation prices the city’s required property tax contribution at $3,594,126 per year.

Property Tax Paying Pension Bonuse

 

To show the property tax increase  exposure created by the 8-year pension bonus ordinance, this release assumes that current employees remain  takes the full 8-year DROP bonus at today’s pay. Under that 100% take-up case, potential DROP lump sums across 225 positions on a $16.5 million payroll total $117.49 million. The three extra pension bonus years added in 2023 account for $48.51 million of that total.

Current Pension Bonus DROP Participants (PRR 2026-333)

Only six employees are enrolled in DROP today. Even that small group is priced at $4.48 million in 8-year lump sums, including $1.85 million from the extra three years alone.

Table 1: Current DROP 8-year bonus Employees

“James Norman decided the 5-year $513,381 was not enough money and demanded and received an 8-year pension bonus of $874,376”, observed Dave Jaye, Lead Researcher, Tripledippers.org. “ William Braun decided a 5-year bonus of $522,009 was not enough money and demanded and received an 8-year pension bonus of $889,071 which Baughn received when he retired July 1, 2026. No private employer pays a pension cash bonus.”

The “Dirty Dozen”: banked leave and pension spiking

Fernandia Beach City politicians allow unused sick and annual leave to be paid at the final highest salary, not the salary when days off were earned. City Politicians passed an ordinance that will bank hours off and count into Average Final Compensation, artificially taking more money from taxpayers and spiking the last year’s pay, which is what their pension is calculated from. Accrual files from PRR 2026-333 show a dozen employees holding more than 1,000 banked hours. Cashing those hours at peak pay inflates the salary that funds a lifetime pension.

“Public safety employees, especially our police officers and firefighters, desperately need a healthy work-life balance. They must take their earned vacation and sick leave for their own mental health, their family’s well-being, and for the safety of themselves, their coworkers, and the public,” added Jaye. “Cops and firefighters who are overworked and exhausted make mistakes, putting public safety at avoidable risk. Capping Leave hours banking to 60 hours, the private sector average will encourage taking necessary time off to recharge—not hoarding hundreds of hours to artificially spike pension payouts at taxpayer expense.”

Taxes up, services listed, pensions omitted

After 75% of voters rejected paid parking, the Commission tentatively set the prooperty tax millage 9.24% above the rolled-back rate and banked about $1.5 million in contingency. City messaging on a proposed homestead exemption warns of a $3.3 million revenue loss and lists cuts to police, fire, parks, and streets. It does not list the $3.59 million pension contribution, DROP lump sums, or leave cash-outs. Property taxes already provide about 47% of general-fund revenue.

“Fernandina Beach has been fleeced by city leadership for years—from paid parking forced on residents to a millage hike after voters said no, to one of the richer municipal pension designs in the state, now richer still,” said Jack Knocke, Fernandina Beach Taxpayers Watchdog. “City policy should be rewritten. Taxpayers need a 401(k)-style plan, the same deal they get at work. Call your commissioners. If we do not push back on paid parking, the 2026 millage, and this pension bonus, we will be taxed to unaffordability.”

“With only six employees currently enrolled in DROP, the city is standing at a critical crossroads,” said Dave Jaye, Lead Researcher at TripleDippers.org and Chairman of the Lee County Taxpayers Association. “If the City Commission does not freeze the legacy pension system and shift to a 401(k) plan right now, property owners will be crushed as the remaining 219 active employees reach DROP eligibility.”

Five-Point Reform and tax-Relief Plan

1. Close Legacy Pension & Shift to 4% Private-Sector 401(k): Immediately close the defined-benefit pension plan to new hires and replace it with a standard private-sector 401(k) featuring a 4% employer match. While legacy pension subsidies currently drain over $3.59 million annually directly from local property taxes, a 4% match on active payroll costs is just $665,888—yielding $3.0 million in immediate annual recurring savings to roll back property taxes.

2. Enforce Signed Retirement Contracts in 6 Months: Enforce official retirement contracts signed by ‘Triple Dippers’ and replace them within six months with younger, qualified personnel rather than fattening the paychecks of retired bureaucrats.

3. Cap Banked Leave at 60 Hours: Enforce a strict 60-hour cap on banked leave carryover and require all accumulated leave to be cashed out at the wage rate in effect when earned to end pension spiking.

4. Consolidate Police Command with Nassau County Sheriff: Issue an immediate Request for Proposal (RFP) for the Nassau County Sheriff’s Office to handle command, HR, and administrative functions for the Police Department, transitioning un-retired officers into Deputies while slashing duplicated administrative overhead.

5. Consolidate Fire Command with Nassau County Fire Rescue: Issue an immediate Request for Proposal (RFP) for Nassau County Fire Rescue to handle command, EMS, HR, and finance functions for the Fire Department, transitioning qualified city firefighters into County personnel while eliminating duplicated administrative overhead.

“Replace this bonus scheme with a standard 4% match and stop pretending the only choices are higher millage or fewer firefighters,” Jaye said. “Most residents have no pension and no DROP check. They should not be the ATM for either.”

After 75% of voters rejected paid parking, the Commission tentatively set the prooperty tax millage 9.24% above the rolled-back rate and banked about $1.5 million in contingency. City messaging on a proposed homestead exemption warns of a $3.3 million revenue loss and lists cuts to police, fire, parks, and streets. It does not list the $3.59 million pension contribution, DROP lump sums, or leave cash-outs. Property taxes already provide about 47% of general-fund revenue.

“Fernandina Beach has been fleeced by city leadership for years—from paid parking forced on residents to a millage hike after voters said no, to one of the richer municipal pension designs in the state, now richer still,” said Jack Knocke, Fernandina Beach Taxpayers Watchdog. “City policy should be rewritten. Taxpayers need a 401(k)-style plan, the same deal they get at work. Call your commissioners. If we do not push back on paid parking, the 2026 millage, and this pension bonus, we will be taxed to unaffordability.”

“With only six employees currently enrolled in DROP, the city is standing at a critical crossroads,” said Dave Jaye, Lead Researcher at TripleDippers.org and Chairman of the Lee County Taxpayers Association. “If the City Commission does not freeze the legacy pension system and shift to a 401(k) plan right now, property owners will be crushed as the remaining 219 active employees reach DROP eligibility.”

Five-Point Reform and tax-Relief Plan

1. Close Legacy Pension & Shift to 4% Private-Sector 401(k): Immediately close the defined-benefit pension plan to new hires and replace it with a standard private-sector 401(k) featuring a 4% employer match. While legacy pension subsidies currently drain over $3.59 million annually directly from local property taxes, a 4% match on active payroll costs is just $665,888—yielding $3.0 million in immediate annual recurring savings to roll back property taxes.

2. Enforce Signed Retirement Contracts in 6 Months: Enforce official retirement contracts signed by ‘Triple Dippers’ and replace them within six months with younger, qualified personnel rather than fattening the paychecks of retired bureaucrats.

3. Cap Banked Leave at 60 Hours: Enforce a strict 60-hour cap on banked leave carryover and require all accumulated leave to be cashed out at the wage rate in effect when earned to end pension spiking.

4. Consolidate Police Command with Nassau County Sheriff: Issue an immediate Request for Proposal (RFP) for the Nassau County Sheriff’s Office to handle command, HR, and administrative functions for the Police Department, transitioning un-retired officers into Deputies while slashing duplicated administrative overhead.

5. Consolidate Fire Command with Nassau County Fire Rescue: Issue an immediate Request for Proposal (RFP) for Nassau County Fire Rescue to handle command, EMS, HR, and finance functions for the Fire Department, transitioning qualified city firefighters into County personnel while eliminating duplicated administrative overhead.

“Replace this bonus scheme with a standard 4% match and stop pretending the only choices are higher millage or fewer firefighters,” Jaye said. “Most residents have no pension and no DROP check. They should not be the ATM for either.”

Image 1: The Private Sector Retirement Disparity (85% Uncovered)

According to the U.S. Bureau of Labor Statistics (BLS), 85% of private-sector workers in the United States do not have a traditional defined-benefit pension. Yet Fernandina Beach property owners are forced to fund stand-alone municipal pensions that yield payouts 50% to 80% higher than local teachers, county staff, and state employees.

Image 2: Taxpayer Pension Subsidy Disparity (Up to 29.37% of Salary)

While private-sector taxpayers rely on self-funded 401(k) accounts or standard 3%–4% employer matches, Fernandina Beach property owners directly subsidize 20.79% of salary for general city employees and 29.37% of salary for public safety personnel.

Image 3: The Property Tax Drain ($3.59 Million Annual Outlay)

Local property taxes directly drain $3,594,126 every year to subsidize both stand-alone city pension funds. Shifting to a standard 4% private-sector 401(k) match model would cost $665,888, generating $3.0 million in immediate annual recurring savings to roll back property taxes.

Image 4: The 60% Pension Bonus Expansion (Ordinances 2023-34 & 2023-35)

When the City Commission voted to expand DROP participation from 5 to 8 years (96 months) at a 4% guaranteed compounding rate, they added $48.51 million in extra potential taxpayer liability, pushing total city-wide DROP exposure to $117.49 million across active staff.

Contact: Dave Jaye, Researcher | 586-488-5177 | dave.jaye55@gmail.com

If you know of other taxpayer-abusive and wasteful TrippleDipper programs, please contact us and join our email list to be notified of important news and new reports.

Join our mailing list!

Be among the first to receive our latest reports and findings. Sign up now.