- The Gainesville City Commission approved a budget with no property tax millage increase but a $7.8 million rise in fire assessment fees.
- The city faces a $10.4 million budget gap after a 6.3% property value increase, prompting $1.4 million in departmental cuts and using $1.2 million from excess funds.
- House Bill 1329 mandates a 10% budget reduction plan yearly, influencing Gainesville's preparation for potential future cuts and budget stability.
The Gainesville City Commission restricted its budget options on Thursday with votes not to raise the property tax millage rate and to proceed with the city manager’s recommendation that could levy a fire assessment increase of around $7.8 million, the equivalent of a 0.6 mill property tax bump.
The votes came with a month remaining before the Truth In Millage (TRIM) deadline of Aug. 19, when taxing districts must tell residents the possible maximum tax increase that could arrive with the new fiscal year on Oct. 1. But taxing authorities (cities, counties, school boards, water management districts, library districts) could opt for lower millage rates at final votes in September.
The city faced a $12 million budget gap heading into its summer recess, and after the final property appraiser’s numbers, which gave a 6.3% increase in property values, the gap was whittled to $10.4 million.
The Gainesville budget office presented interim City Manager Andrew Persons’ recommended budget scenario, along with six other balancing scenarios.
The City Commission approved Persons’ budget that includes no millage rate increase—keeping it flat at 6.7297 mills—while boosting the fire assessment by $7.8 million, cutting $1.4 million from departments and using $1.2 million in excess fund balance to cover vehicle replacement in its fleet.
Even without raising the millage rate, the city would collect an additional $4.2 million compared with the current fiscal year because of higher property values.
Commissioner Casey Willits noted that Thursday’s millage rate decision moved options off the table, like two budget scenarios that split the revenue increase between a higher millage rate and a more moderate fire assessment bump.
Willits said he still has problems with the fire assessment, long opposing what he sees as a higher burden on renters after a 2023 switch in methodology. If the fire assessment increases, that would exacerbate the inequality, he said.
The fire assessment is a fee charged to property owners that covers the costs to respond to fires. The fee is calculated by setting a rate for each class of structure (industrial, commercial, residential, multi-family residential) per square foot.
The 2023 change, switching to the same methodology as more than 90% of Florida cities, placed more burden on larger buildings like apartments and away from single-family homes. The increase proposed this year would move the city from recouping 53% of the maximum possible set by the state to 85% of the maximum.
Willits voted with the majority in favor of the manager’s plan, but the actual fire assessment vote will come later.
Commissioner Ed Book also focused on the fire assessment. He said he’d want to see a phasing up of the assessment instead of a sharp change in one year that netted $7.8 million more than the current year’s fire assessment, which totaled $12.6 million of Gainesville Fire Rescue’s $28.5 million budget for this year.
Book said he’d like to see a move from collecting 53% of the maximum amount to 70% and then make another step up in future years. He said the other charter officers not currently slated for reductions could come together to make up the $3.6 million difference.
“Essentially, it’s time to do less with less,” Book said. “You don’t take an existing reduced workforce and stretch it even a little bit more.”
The city of Gainesville has approved budget reductions and rate increases since a dramatic cut to the general service contribution provided by Gainesville Regional Utilities (GRU). Commissioner Bryan Eastman said the transfer helped keep taxes lower and that the city split the approximately $30 million in lost revenue between increased taxes and cuts.
Eastman said he’s tired of being in the same budget scenario year after year and pushed for a five-year budget projection. If staff predict growing expenditures, he said the city could try to slow that down with this budget instead of dealing with the full impact later and always filling large gaps.
“I want us to be sure that we’re in a position for the future that we’re not here every single year, that we’re not saying how are we going to increase revenues to make this up. That we’re in a stable position,” Eastman said.
One of the biggest factors impacting future budgets, though, is outside the city’s control. The proposed increase to the homestead tax exemption would cut an estimated $12.6 million from the city’s budget by 2028.
Persons said creating the six budget scenarios prepped staff for that shortfall if it should come. One of the scenarios filled the $10.4 million budget gap with only cuts from across the city, including 60.5 vacant and nine filled full-time positions.
Persons said the city is ahead of the curve if the November homestead exemption passes.
Willits highlighted that the budget process also prepared staff for a new state requirement starting next fiscal year. Signed in June, House Bill 1329 requires each Florida city to prepare and publish a 10% budget reduction scenario.
“If this felt unnerving, it’s very sad to say, the Legislature has mandated that we get into this unnerving position every single year where we at least theorize a 10% decrement,” Willits said.
He said he views the bill as the Legislature wanting cities to voluntarily say what and who isn’t necessary for the operations. He said he doesn’t like that form, comparing it to saying which children or pets you would save first from a fire.
A 171-page budget document shows what forced cuts across all city departments would impact, going down to $50 for postage reductions. Examples also include stopping funds to A Very GNV Holiday Parade ($35,000) or artist funding for community events at Bo Diddley Plaza, like Free Friday Concerts ($20,000), which drives downtown foot traffic.
The City Commission asked for another budget meeting on Aug. 6 to discuss small line items like freezing the commissioners’ salaries and reducing their travel stipend.
While the cuts would result in little total savings, around $25,000, Book said it showed the commission leading by example.
Others seemed cool to the idea, though. Mayor Harvey Ward said it’s hard to get people to run for office with the low salaries. If the city wants people from different stations in life, or just not retired, to run for office, the salaries need to stay livable.
The mayor’s seat earns around $54,000 annually with commissioners at $43,000 for 2025.
Commissioner James Ingle, who backed the manager’s budget, agreed. He said the action accomplishes nothing budget-wise while impacting some commissioners who miss work to legislate the city.