Gainesville City Commission advances budget that keeps property tax rates flat, increases fire assessment fee by 60%

BY JENNIFER CABRERA

GAINESVILLE, Fla. – During the evening session of the July 16 meeting, the Gainesville City Commission directed the City Manager to move forward with a budget that keeps property tax rates flat (a 5% increase over the rolled-back rate) and increases the fire assessment fee by 60%.

Office of Management & Budget Director Allison Teslia reminded Commissioners that there was a $12.1 million budget gap at their last budget workshop, and since that date, estimated revenues have increased by about $3.4 million, leading to a gap of $8.6 million if the Commission holds the property tax rate flat at 6.7297 mills. Teslia also told Commissioners that because of a new statute, holding the rate flat will require a 2/3 vote (five out of seven Commissioners) because it results in increased revenue over the previous year. The highest rate they can set with a 2/3 vote is 7.0223 mills; anything higher would require a unanimous vote. 

The rolled-back rate, which is the rate that would generate the same revenue as last year, excluding new construction, is 6.3839 mills. Under the new statute, that is the only rate that can be adopted with a simple majority.

The fire assessment fee for a single-family residence is currently $153 per year; at 85%, it would increase to $245. At 70%, it would be $202.

Interim City Manager Andrew Persons proposed seven balancing scenarios and recommended the first one:

• Set the fire assessment fee to cover 85% of fire expenses, keep the property tax rate flat, reduce expenses by $1.4 million without eliminating any positions, and use $1.2 million from the Fleet Fund excess fund balance;
• Increase the property tax rate by 0.8762 mills;
• Hold the property tax rate flat at 6.7297 mills and reduce expenses by $10.39 million, including eliminating 69.5 positions (60.5 vacant);
• Set the fire assessment fee to cover 70% of expenses, increase the property tax rate by 0.2635 mills, reduce expenses by $1.94 million, including eliminating 5.4 positions (2.9 vacant), and use $1.2 million from the Fleet Fund excess fund balance;
• Set the fire assessment fee to cover 70% of expenses, hold the property tax rate flat, use $2.6 million from the Fleet Fund excess fund balance, and reduce expenses by $3.63 million, including eliminating 18.4 positions (10.9 vacant);
• Set the fire assessment fee to cover 85% of expenses, increase the property tax rate by 0.1095 mills, and reduce expenditures by $1.3 million without eliminating any positions;
• Set the fire assessment fee to cover 85% of expenses, keep the property tax rate flat, and reduce expenses by $2.6 million, including eliminating 7.9 positions (6.9 vacant).

How the recommended scenario achieves $1.4 million reduction in expenses

The reductions in the recommended scenario include closing the Resiliency Office and moving the Chief Resiliency Officer to a Planner 4 position in Sustainable Development; using AI captioning and ending the GNV on the Move program; ending recognitions, awards, team-building meals, and the Armored Car service in the Financial Services department, along with passing on credit card processing fees to payers; sunsetting the Fire Department’s Community-Based Recruiting and Mentorship Program; downgrading a filled position in Human Resources to a lower salary; eliminating management consulting in the Management and Budget Office; eliminating the Family Unification Program, which was not operating because no provider has been identified to provide services; reducing Parks, Recreation and Cultural Affairs’ operating budget by $200k and discontinuing the Thomas Center Tree Lighting Ceremony, seasonal lighting displays, and holiday decorations; shifting some funding for Public Works from the General Fund to the Roadway Resurfacing Fund and Tree Mitigation Fund; reducing the City Hall security contract by 731 hours; shifting some funding for Sustainable Development to the Tree Mitigation Fund; reducing the Technology budget for office supplies, memberships, and meals during after-hour operations; and reducing parking garage security services.

Commissioner Casey Willits: “The purpose of the City of Gainesville cannot just be public safety.”

After some discussion about the City Manager’s proposal, Commissioner Casey Willits said, “The purpose of the City of Gainesville cannot just be public safety. [With] a 7% increase per year at 3% revenue increase per year, literally public safety will eat the City,… probably 60, 70, 80, 90% of our budget [will eventually be] going to public safety.” Willits said that could lead to proposals to consolidate law enforcement and fire services with the County.

Willits continued, “I like my GPD, my GFR. I like that. But at some point, what is the purpose of a City if public safety eats all of it?… One portion of our City can’t be growing by 7% forever,… literally bigger than our revenue growth… Long-term, things like… health insurance costs may change, you know, knock on wood. If we get some sort of universal health insurance by the federal government that really frees up businesses and municipalities to worry about providing services rather than health insurance, I would prefer that.”

Commissioner James Ingle said, “One of the things I like about using the fire assessment in this situation is that as that fire budget grows, that fire assessment at 85% automatically grows with it.”

Commissioner Ed Book pointed out that the police department is actually smaller now than it was in 2011; the increases have been in salary and benefits. He disagreed with setting the fire assessment fee at 85% and preferred increasing it more gradually, starting at 70% in the coming year. 

Book wanted to freeze Commissioners’ salaries, but City Attorney Daniel Nee pointed out that their salary increases are set by ordinance, so they can’t simply change them by instructing the City Manager to cut the budget.

Motions

Commissioner Cynthia Chestnut made a motion to accept the City Manager’s recommended budget, and Ingle seconded the motion. Commissioner Bryan Eastman said he wanted to have another meeting to discuss the budget in more detail and look at estimated budgets for the next five years, so Chestnut added a second part to the motion to have a meeting on August 6 to discuss future-year scenarios and incremental changes to the recommended budget.

The motion passed 5-1, with Book in dissent and Commissioner Desmon Duncan-Walker absent.

Ingle made a motion to set the maximum property tax rate at 6.7297 mills, and Chestnut seconded the motion. The motion passed 6-0, with Duncan-Walker absent.

Since the property tax rate is a 5% increase over the rolled-back rate, five Commissioners will need to vote in favor of that rate when the final vote is taken in September.

What’s ahead

TRIM notices will be mailed on August 19 with the maximum rates.

Commissioners will hold a budget discussion on August 6, the first public hearing on the budget will be on September 10, and the final budget will be adopted on September 17.