The Gainesville City Commission approved several budget items on Thursday as it heads into the home stretch of the fiscal year and gave final approval for a 14-story apartment complex next to UF’s main campus. 

The city’s fiscal year ends Sept. 30, and the City Commission will need to approve a new millage rate for property taxes by then. On Thursday, the commissioners set a not-to-exceed rate of 6.8912 mills, meaning the final rate cannot be higher.  

Early budget discussions estimated keeping the millage rate flat, but a growing gap in the budget has brought increased property taxes into the mix.  

Commissioners said that the city has reduced its budget in the past few years, leaving little left to cut. The overall general fund budget went from $145.3 million in 2022 to $154.3 million in 2023 to $156.4 million in 2024 and a proposed $156.7 million this year.  

In the last two years, the city eliminated over 120 positions, many unfilled, while dealing with rising costs and lower revenues from the Gainesville Regional Utilities Authority. 

Commissioner Ed Book said that most of the increases in the proposed 2025-2026 budget deal with pay raises to staff—many coming from contracts with collective bargaining units. He highlighted that public safety made up the majority of the increases and said those personnel had been paid below the market average. 

“The vast majority of all our increase is directly to staff, to people doing the work, and that’s really important. That’s where our general revenue increase has occurred. So we’ve done the right thing there,” Book said. 

The rising bargaining unit costs mean cuts elsewhere or finding new revenues, with a $9 million gap outlined in May. The tentative and final millage rates will be set at meetings in September.  

The City Commission also passed a 5% increase in the business tax—a fee that each business pays depending on their sector.  

According to city staff, the business tax hasn’t been changed since 2000 and needed to be updated. The 5% increase is only estimated to generate $43,000 in additional revenue. Staff said over half of businesses will see a less than $7 increase in their fee.  

The City Commission also voted to finalize a rezoning and land use change for a 0.66-acre parcel across University Avenue from Library West. Switching from U8 to planned development zoning, the lot now has approval to build a 14-story apartment complex with 240 units, versus 99 units without the rezoning.  

The development also anticipates some retail space on the bottom of the building.  

Part of the development will be set aside for affordable housing, with 24 units at 80% area median income (AMI) and 72 units at 120% AMI. The monthly rent cap for the 80% AMI units would be $1,430 for a 1-bedroom apartment and $1,716 for a 2-bedroom apartment. The monthly rent cap for the 120% AMI units would be $2,145 for a 1-bedroom apartment and $2,574 for a 2-bedroom apartment.  

To be considered at the 80% AMI level, a single individual would need to make $53,360 or $61,040 for a family of two. To be considered at the 120% AMI level, a single individual would need to make $80,040 or $91,560 for a family of two.  

“I know we’re using the term affordable. I do make the contention that there is actually nothing affordable in this particular project,” Book said.  

Critics also pointed to only 13 vehicle parking spaces planned for the property. 

Thursday’s vote mirrored the preliminary vote from June with a 4-3 split commission. Book joined commissioners Cynthia Chestnut and Desmon Duncan-Walker in dissent.  

Commissioner Casey Willits said the developer could already build up to 12 stories through the Live Local Act passed by the state. But Willits said with less units, the apartments would be even less affordable.  

He and Commissioner Bryan Eastman said this is the area of the city where development should be rising higher and be denser.  

“This is a main street. It doesn’t get any more main street,” Willits said.  

Mayor Harvey Ward said the development isn’t as novel as it seems. Though taller by two stories, he said the density of the project is equal to that of buildings nearby and the UF dormitories to the south.