The city of Gainesville kicked off its budget season on Thursday, hearing preliminary revenue and expenditure numbers that will solidify over the next six months.  

Before the start of the city’s new fiscal year on Oct. 1, the Gainesville City Commission will take votes to set the millage rate, to decide the fire assessment and to consider cuts. This year’s budget season comes with several uncertainties that have persisted over the past few years, namely the creation of the Gainesville Regional Utilities (GRU) Authority.  

The GRU Authority will send over its budget in June. That budget will include the size of the general services contribution that the utility sends to the general government. The reduction of this contribution has resulted in recent cuts within general government.  

At the start of last year’s budget cycle, the City Commission didn’t know who would make the decision at GRU following the resignation of the members. Once appointed, the GRU Authority decided on an $8.5 million contribution.  

Cintya Ramos, executive chief of staff, said the city currently has a budget gap of $5.2 million. Projecting a 6% increase in property tax values, the city would receive around $1.4 million in taxes if the millage rate stayed flat.  

Ramos said other taxes (gas tax, communications service tax and utility tax) are projected for 0%-1% increases. The city also expects reduced revenue from right-of-way fees and reduced expenditures by no longer having a dedicated utility attorney.  

Ramos said city staff also recommend collecting $317,000 more of the fire budget through the fire assessment. While the recommendation wouldn’t include raising the fire assessment rate, it would still increase what households pay.  

City Manager Cynthia Curry said the increase would be pennies per household, and the commission voted to approve this increase on Thursday. 

The majority of the $5.2 million gap comes from public safety increases, Ramos said, including 20 full-time positions for the Gainesville Police Department (GPD). These empty positions were frozen during previous budget cuts but will now get added back.  

Increases in pay based on bargaining units and merit increases for general government staff also pushed expenditures higher. The city added GRACE Marketplace (at $1.6 million) back to the general fund after paying for it through federal grant money in the current fiscal year.  

Mayor Harvey Ward said a budget deficiency at the start of the fiscal year is normal. As state numbers get confirmed and staff work the budget, it will balance, he said.  

“This is not out of the ordinary at all, so be aware of that,” Ward said. “Do not let it surprise you or throw you off.” 

Still, Commissioner Bryan Eastman said it felt like a large gap heading into the budget season. He asked Curry how conservative the initial estimates were on revenue.  

Curry said the increase to Gainesville’s taxable property value varies each year but has averaged around 7%.  

“We always balance, and so, in the end, we will balance,” Curry said. “But I think that these are conservative [estimates].” 

However, Curry said the city will likely need to switch around numbers on the expense side versus the revenue side. She said an increase in tax values won’t bridge the gap or even most of it.  

Because the GPD positions represent the majority of the new expenses, she said staff will analyze that budget and all department budgets to see what numbers can change. In the end, Curry said the city would balance the budget.  

The city has several levers to use, but commissioners remain opposed to raising the millage rate after a 16.9% increase in 2023.  

Ramos noted that the city has a healthy fiscal reserve, called fund balance. City ordinances require the commission to keep enough cash on hand to pay for three months of operations, around $40 million.  

The city currently has around $18 million more in the fund balance than required, and city staff said they want to begin using the surplus for projects.  

Curry said this surplus shouldn’t be used to fill reoccurring budget needs, like those that form the $5.2 million gap. She said the money should be used for capital projects and one-time expenses.  

Ramos outlined several buildings with renovation needs that the surplus could address—City Hall at $2.3 million, Historic Thomas Center at $4.5 million, Old Library Building at $829,000 and the Senior Recreation Center at $200,000.  

In addition, the commission has eyed several new capital projects like the 8th Avenue and Waldo Road revitalization, a new park in southwest Gainesville, a southwest public safety center, a new Morningside Nature Center and improvements to the Wilhelmina Johnson Cultural Center. 

In addition to the budget talks, the commission also approved six audits done by an outside firm. The city received a clean audit for all six, with no findings.  

Budget Timeline:  

• May: Budget workshops for commission to review each department. 

• May 22: First public hearing for the fire assessment.  

• June: Final budget workshop on departments. 

• June: Gainesville will receive preliminary state number on increases to taxable property values.   

• June: GRU Authority will send its annual budget and general services contribution amount.  

• July 1: Gainesville will receive finalized state numbers on increases to taxable property values.  

• July 17: Gainesville sets maximum possible millage rate.  

• September: Gainesville votes on preliminary and then final budget, millage rate, fire assessment and Appendix A.