Gainesville City Council will consider approving a $33.5 million budget when it meets in June that includes no tax increases or water/sewer rate hikes.

City Manager Bryan Lackey unveiled his proposal Thursday, which is an 8.9 percent, or about $2.8 million, increase in spending for the 2017 fiscal year beginning July 1.

Lackey said new spending is a result of increased property tax revenues, which are up 4.4 percent, while the city has seen a 21.4 percent increase in permit and inspection fees resulting from new commercial and residential growth.
And departments have held the line on expenses and no major storm damage spending was made in the last year, Lackey said.

The additional revenue will be applied in several areas, including more than $600,000 for raises and one-time $1,000 bonuses to employees.

New positions are proposed in IT, community development and stormwater inspection, with total departmental expenditures up 3.8 percent.

Public safety spending makes up 50 percent of the proposed budget, but funding for police and fire is flat and up less than 5 percent, respectively.

Public works makes up 17 percent of the budget, and an additional $230,000 is proposed for stormwater infrastructure upgrades.

The fund balance has increased to $4.1 million from $2.3 million in the proposed budget and will be applied to capital projects, which has a whopping $14 million tag, double the funding from the current year.

Lackey said this level is unsustainable in the long term, but additional revenues call for making the investments now.

They include traffic improvements and road beautification projects, equipment purchases and IT upgrades, and start-up funding for a land bank to address local housing and blighted properties.

Lackey said future fiscal challenges for the city include rising health care costs, additional personnel needs and ongoing transportation fixes.

Meetings with council members to review budget line items are scheduled in the next week.