I’ve spent time going through the city’s Ordinance 2026-10 and the March 2026 rate study that supports it. If you own or manage commercial property here, this is worth paying attention to. Starting October 1, 2026, the way stormwater fees are calculated is changing, and the impact won’t be the same for everyone.

The ordinance moves us to a new Equivalent Residential Unit (ERU) system based on impervious surface. One ERU equals 3,000 square feet of impervious area. Single-family homes get tiered treatment: small homes (1,500 sq ft or less) are billed at 0.5 ERU, average homes at 1 ERU, and large homes capped at 2 ERU. Multi-family properties shift to 0.7 ERU per unit. Commercial and industrial properties will be charged based on actual measured impervious square footage, with a minimum of 2 ERUs, rounded down to the nearest whole number.

One of the bigger changes is the complete elimination of the previous 50% utility fee credit for properties that had on-site stormwater management facilities. That credit is gone. The typical single-family residential rate is moving from $14.36 to $16.75 per month — about a 16.7% increase. Commercial accounts start at a $33.50 monthly minimum and scale with their actual impervious area.

According to the rate study’s comparison, even after the increase, Fernandina Beach’s typical residential rate remains competitive with other coastal Florida utilities. Many of those communities charge similar or higher amounts depending on their own infrastructure demands.

The city’s stated reasons are laid out clearly in the rate study. They project a revenue shortfall starting in FY 2027 under current rates. The plan includes expanding the maintenance program (roughly $343,000 annually for a dedicated crew and resiliency staffing), funding about $9.9 million in capital improvements over six years (drainage conveyance work, pipe rehabilitation, culvert repairs, and equipment), and creating a new Renewal and Replacement Fund. These needs come from the Stormwater Master Plan. The study does not frame this as an emergency caused by past cost overruns — it presents it as
forward-looking investment to keep the system functioning and resilient in a coastal environment.

What concerns me is how this landed for many of the businesses that will actually pay more. The city estimates 1,051 commercial accounts will see increases. Some will be modest. Others — especially larger properties or those that previously received the 50% credit — will see bigger jumps. A spreadsheet some local business owners have been sharing shows the range of impacts, and it tracks with the new methodology.

The rate study and ordinance followed the normal public process, including a workshop in April. But for many of the people writing the checks, this still feels abrupt. There wasn’t widespread direct outreach to commercial utility customers beyond the standard noticing requirements. A lot of business owners are only now seeing what their new bills could look like.

Infrastructure funding is necessary. Coastal communities can’t afford to let stormwater systems fall behind. At the same time, when costs shift significantly for over a thousand commercial accounts, clearer and more direct communication would have helped. The appeals process exists for measurement disputes, and there’s still time for public comment as the ordinance moves through commission.

If you have commercial property here, it’s worth pulling your impervious numbers and running the calculation so you know what to expect. The documents are public, and the math is straightforward once you see how ERUs are assigned.

This is one of those local changes that deserves attention before the new bills start arriving.

This post was prepared with AI assistance for research, fact-checking, and initial drafting.