Gainesville commission hears FY2026 departmental budgets; staff warns gap remains

City staff on May 8 presented proposed fiscal year 2026 budgets for administrative and charter offices and told the Gainesville City Commission the city is not yet positioned to close a multi‑million dollar shortfall.

At a budget workshop at City Hall, staff recapped an earlier revenue estimate and departmental submissions and said the general fund gap identified at the March 27 retreat—"approximately $5,300,000," according to Cynthia Ramos—has grown slightly and will require additional direction and options from staff before the commission adopts a balanced budget later this year.

The presentations covered the city attorney, auditor, clerk, city commission and manager offices, and several administrative departments including equity and inclusion, communications, finance, procurement and contracts management (on "management watch"), human resources, management and budget, risk management/employee health and technology. Staff emphasized they were presenting preliminary department roll‑ups rather than final recommendations for balancing the gap.

"There was a gap of approximately 5,300,000. And like I said, that gap has increased slightly," Ramos told the commission during the presentation. She said staff will return with updated revenue and balancing options at the June meeting and noted the city will receive property tax valuation data from the property appraiser on July 1, which will narrow estimates for the millage-setting process.

City Manager Ms. Curry and budget staff outlined the public calendar: preliminary departmental reviews continue on May 22 with the core operational departments (police, fire rescue, parks, cultural affairs and public works) and the first public hearing for the fire assessment; another workshop is scheduled for June 12 to review remaining departments. The commission is scheduled to set a maximum millage rate on July 17 and hold the first required budget hearing on Sept. 11.

Finance director Dennis Wen highlighted accomplishments in the Department of Financial Services, including a clean audit opinion on the city’s annual comprehensive financial report and work on stabilizing the city’s ERP system. "We produced an annual comprehensive report with a clean audit opinion," Wen said, noting the department processed substantial payroll and receivables during the year and oversees investment assets.

City Attorney Danny Harris described his office’s FY2026 request as largely flat, with the small increase driven by salary and fringe cost escalations. "The only increases that we have are attributed to ... increases in salaries ... I think they calculated at 3.7%," Harris said.

Procurement and contracts management was reported to be under management watch after a July 2024 review. Procurement and contracts manager Tato Zalino said managers have prioritized stabilizing operations and filling vacancies in buying and contracting positions. Zalino said the division is pursuing additional staff training and an external review by consultant Barry Dunn, and that staff are evaluating targeted Workday procurement modules to speed reporting and contract administration. "We are now fully staffed on the buyer's side," Zalino said, adding the FY2026 budget request includes modest operating increases to right‑size training and software funding.

Human Resources director Laura Gratz said HR continues to support both city government and a transition of HR services for Gainesville Regional Utilities (GRU). Gratz said HR processed more than 1,000 applications and 119 hires year‑to‑date and that the city has reduced HR FTEs in recent years while maintaining core services. She said GRU is building its own HR operation with an anticipated (but flexible) transition target date of Dec. 31, 2025, and the city is budgeting revenue and expense for HR services from GRU for FY2026 until that transition is finalized.

Office of Equity and Inclusion staff described backlog reductions in complaint investigations after adding compliance positions in prior years; the office is proposing elimination of one ARPA‑funded position as those grant funds near exhaustion. Risk management and employee health staff reported efforts to reduce avoidable emergency‑room use and to reopen claim processing quickly to limit long‑term costs.

On technology, staff said the city has offered the director role to Ed Nagy, who is expected to start May 19; the proposed technology budget includes Workday maintenance increases and a GRU service level agreement (SLA) that will be adjusted as the new department’s operating needs are finalized.

Throughout the workshop commissioners pressed directors on staffing levels, vacancies, and work the city provides for GRU and other entities. Several directors said they continue to provide services to GRU under service agreements and that those contracts have been reduced in scope or funding in recent years; staff said they are working with consultants on indirect cost allocations.

No final policy actions or budget balancing decisions were taken at the workshop; staff and commissioners agreed to continue the process and return with updated revenue estimates and balancing options at the June meeting(s). The workshop did include one procedural vote at the start: the commission unanimously adopted the agenda for the special budget workshop with Commissioner Chestnut absent.

Next steps: staff will present core operational department budgets at the May 22 workshop and return on June 12 with the remaining departments and an updated summary of the general fund and options to address the gap ahead of the millage and hearing schedule this summer and fall.