Gainesville Development News

Gainesville City Council Reviews FY2027 Budget, Plans Millage Rate Rollback and Water Rate Adjustments

The City Council held a public hearing on the recommended Fiscal Year 2027 budget. The proposed budget is just over $42 million, an 8.65% increase from the previous year. Despite this increase, the city plans a full rollback of the general fund millage rate. The budget will cover a $1 million shortfall in the fire fund due to a 3% homestead cap, a $1.3 million shortfall in solid waste, and a $500,000 deficit for the golf course. The general fund will also cover a 5% pay adjustment for employees and the addition of one risk management specialist. Capital projects are budgeted at $3.6 million. The general fund revenue is diversified, with sales tax (25%) and franchise fees being significant sources, while property taxes constitute only 3.5%. The city plans to offer a homestead credit on property taxes for homeowners within the city. Water rates will see an increase due to rising costs of power, chemicals, and biosolids, with a proposed additional 1% increase per gallon over the next five years, plus a $1 monthly increase on the account service fee. Numerous other fees are also being updated to industry standards. The budget adoption is scheduled for July 7th, with millage rate adoption planned for August 18th.