There’s no polite way to say this: City of Fernandina Beach is being taken for a ride by its own bank.
According to city financial records, Fernandina is earning far less interest on its deposits than Nassau County — even though both accounts are managed by the same bank.
And this isn’t pocket change. The difference is 2.2% — 1.6% paid to the City versus 3.8% to the County.
That gap translates into a potential $880,000 in lost earnings every year, based on the city’s average $40 million balance. That’s nearly a million dollars gone, money that could’ve paid for city employee raises, park improvements or road repairs — without raising taxes or adding paid parking.
While the city searches for new ways to squeeze taxpayers, the bank quietly pockets the difference.
The City Was Warned — and Did Nothing
This issue has been on the radar for more than three years.
“Average Balance: $40 million × Rate Difference: 2.2% = Potential Lost $880,000.”
The contract with the bank — reportedly not extended earlier this year — has long under‑performed. City officials were specifically asked to request a rate match with the county. They did. The bank didn’t comply. And what did the city do about it? Nothing. Zero. Nada.
Instead, they’ve kept depositing millions into a low‑yield account — effectively donating taxpayer money to their bank’s profit line.
The Bigger Problem: Governments That Don’t Know How to Manage Money
Fernandina Beach isn’t the only offender. Just down the coast, another city sat on $12 million in a non‑interest‑bearing account — for five years. That’s millions earning nothing while the banks turn around and lend it out for hefty profits.
If private business owners ran their finances like this, they’d be bankrupt. When local governments do it, taxpayers foot the bill and officials shrug.
The Lesson: Government Is Not a Business — But It Should Be
City leaders love to talk about “efficiency” and “fiscal responsibility.” But these numbers prove otherwise. They don’t negotiate. They don’t compare returns. They don’t safeguard the public’s cash.
Every taxpayer in Nassau County should be outraged. This isn’t politics — it’s basic competence. When elected officials fail to manage money wisely, they betray public trust and invite scrutiny from groups like DOGE and the Florida Agency for Fiscal Oversight (FAFO) — both of which are now aware of this situation and watching closely.
When this banking contract comes up for renewal, it must go through a competitive bid process to ensure Fernandina Beach finally earns fair market value for its money.
Shame on Both — the Cities and the Banks
Let’s be honest — the banks aren’t innocent. They know governments often don’t check the fine print. They know they can pay one rate to the county and another (much lower) to the city and no one will notice.
That’s not “good business.” It’s exploitation.
Shame on Fernandina Beach. Shame on the banks that take advantage of them.
Taxpayers deserve better. If you’re a private vendor doing business with these cities, you might as well get in line — because incompetence has become a gold mine.
Call to Action for Citizens & Watchdogs
• Ask your city commissioners why Fernandina Beach earned only ~1.6% interest while the county got ~3.8%.
• Demand the banking contract be publicly reviewed and bid out — with full transparency.
• Monitor city deposits regularly — six‑and‑seven‑figure balances demand more than glancing oversight.
• If you’re in Nassau County and care about your tax dollars — join DOGE, send in tips, raise awareness.
