Gainesville City Commission to review Fiscal Year 2027 budget proposal

Published on July 15, 2026

The Gainesville City Commission will take the next step in developing the city's fiscal year 2027 budget on Thursday, July 16, when proposals developed by the City Manager’s Office and Office of Management and Budget are presented for review. The agenda item is scheduled for the evening session, giving the public greater opportunity to observe and comment on the proceedings as commissioners debate the budget and establish the maximum millage rate for the coming fiscal year.

The budget presentation comes after several months of budget workshops, analysis and departmental review to address an anticipated General Fund gap that, as of June 2, was as high as $12.1 million. That predicted shortfall has since decreased to an estimated $8.6 million, with the budget proposal recommended by interim City Manager Andrew Persons relying on a combination of financial levers to achieve balance.

“Our intention with this particular budget proposal, which is one of seven separate scenarios given to commissioners to consider, is to keep providing a high level of service at reduced cost,” said interim City Manager Persons. “It closes the gap without eliminating any filled positions from the General Fund and steadies us for continued fiscal stability in the year ahead.”

At the July 16 meeting, city commissioners will review the scenarios provided by the Office of Management and Budget, all with varying configurations of spending cuts and revenue options. The proposal recommended by interim City Manager Persons does not include an increase to the city’s 6.7297 property tax millage rate but does suggest a higher fire assessment, a series of departmental reductions totaling $1.4 million, and utilizing $1.2 million of excess fund balance within the Fleet Fund.

Also at Thursday’s meeting, the city commission will set the maximum property tax millage rate, a ceiling that can be lowered before adoption of the final budget but not increased. It’s worth noting that property taxes are the city’s biggest source of money for local services, making up almost half of the General Fund. Since separating from Gainesville Regional Utilities (GRU), the city commission has voted to raise the millage rate twice—by 0.9297 mills in fiscal year 2024 and 0.3000 mills in fiscal year 2026. These increases were intended to offset the loss of revenue resulting from the separation of GRU and the corresponding reduction in the Government Services Contribution (GSC), the utility funding that historically helped pay for city services.

"This proposal reflects the difficult work of adapting to a new financial reality while continuing to invest in the services our community depends on every day," said Gainesville Mayor Harvey L. Ward. "Every budget involves choices, and this recommendation gives us a thoughtful starting point that preserves our focus on public safety, infrastructure improvements and quality of life without increasing the millage rate. I’m so appreciative that our team was able to bridge what was a substantial gap and bring us a balanced budget so efficiently."

Although interim City Manager Persons is not recommending any changes to the current property tax millage rate, the city would receive additional revenue due to growth in taxable property values. The Alachua County Property Appraiser’s July 1 certified taxable values report shows a 6.24% increase in Gainesville’s taxable property values, rising from approximately $77.5 million to $81.6 million. This increase is expected to generate about $4.1 million in additional revenue utilizing the current property tax millage rate. Under Florida’s Truth-in-millage (TRIM) requirements, maintaining the current millage rate would be classified as a tax increase because it generates more revenue than the rolled-back rate. To keep the existing rate of 6.7297 mills, the city commission must approve it with a two thirds vote.

Following the July 16 meeting, the next budget discussion is a public hearing scheduled for Sept. 10, at which the city commission will set the tentative millage rate, final assessment rates and approve the first reading of the Fiscal Year 2027 Financial and Operating Plan. The second and final public hearing on Sept. 17 will include setting of the final millage rate and the second and final reading of the Fiscal Year 2027 Financial and Operating Plan.