The property tax rate is expected to reduce while revenues and prices increase to fund projects following continuous inflation in Gainesville.
Property Tax Rate Expected to Reduce As Revenues and Prices Increase to Fund Current and Future Projects in Gainesville
The property tax rate is expected to reduce by five cents as the revenues and prices continue to increase to fund current and future projects in Gainesville, wherein the property tax rate prompted the administration to increase the revenues and prices to have additional funding.
According to a report published in Daily Register, the property tax rate caused the increasing revenues and prices, but Gainesville officials claimed that the price increase for water and solid waste would help the city meet the needed budget for ongoing and future projects despite the reduction in the property tax rate.
With the ongoing projects that still needed to be completed, the reduction in the property tax rate negatively impacted the funds to be used even with the existing balances, which led to the officials using balances from other sectors, such as hotel/motel funds, following the property tax rate reduction.
How Gainesville Continues Funding Ongoing Projects Despite Reduction of Property Tax Rate
Despite the property tax rate reduction, Gainesville officials looked for ways to fund ongoing projects and continue operating their system, such as using excess funds from projects that ended in previous years, The Gainesville Sun reported.
The city also prepared contingency budgets that were allocated for unexpected financial problems and tried to increase fees for different sectors to cope with the reduction of the property tax rate amidst inflation.
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