Neptune Beach Mayor Cori Bylund pulled the proposed fiscal year 2026-27 budget from the city council agenda Aug. 19, telling residents in attendance she found "several deficiencies" in the document and would not present it as written.

"I know that we have people here because of this item on the agenda," Bylund said. "When I reviewed the budget, I found several deficiencies. I discussed it with staff and they agreed. They also found several deficiencies."

Weekly Workshops Ordered Until a Version Is Ready

Bylund ordered weekly Monday budget workshops until the council has a version it can approve, the Beach Gazette reported. The first workshop is expected the week of Aug. 24. Florida law requires cities to adopt their budgets by Sept. 30.

Bylund did not detail what the deficiencies were or what caused the delay.

The city held a budget workshop on July 20, covering health care funding, pension cost-of-living adjustment (COLA) funding, mobility management, parks and sustainability, and public works. Whatever problems Bylund identified emerged between that session and the Aug. 19 meeting.

A Property Tax Referendum Adds to the Pressure

The budget troubles come as Neptune Beach faces a potential revenue hit from Florida Amendment 3, which would increase the homestead exemption for all non-school taxes to $150,000 in 2027 and $250,000 in 2028. The measure requires 60% voter approval on the Nov. 3 general election ballot.

Bylund said the state property-tax initiative dominated discussion at the Florida League of Cities annual conference, which she attended with council member Tim Horvath. She warned that Jacksonville faces a projected $300 million deficit if the amendment passes, and that Neptune Beach would feel a secondary impact because it receives shared revenue from Jacksonville, which serves as the Duval County government.

Jacksonville's Shared Revenue Adds a Second Layer of Risk

Bylund said the city would lose not only its own homestead tax revenue but also money it receives through Jacksonville's county services, and that the city plans to release additional information about the combined impact.

Bylund has previously said Neptune Beach would need to cut $2.5 million to $2.6 million from its budget if the referendum passes. City Manager Richard Pike presented analysis in early August showing the city's $11.7 million general fund makes up 42.1% of its $27.9 million total budget, with 46% of general fund spending going to the police department.

"It's going to be very difficult for Neptune Beach or any other city to make up for that loss," Pike said at an Aug. 4 budget workshop. "People who live at the beaches in Jacksonville, Neptune and Atlantic Beach are used to and expect a certain level of service. They pick up the phone, and the police are there in two or three minutes."

Neptune Beach's millage rate of 3.3656 mills sits below the state average of 4.82 mills. A 2020 council vote requires a supermajority to raise the rate, limiting one option for offsetting lost revenue.

Next Steps Before the September Deadline

City staff plans to release information about the amendment's potential local impact in September, ahead of the November vote. The statutory deadline for budget adoption is Sept. 30.