City Hall may depend on money from property owners to handle its budget shortfalls, which was announced during a press conference held Tuesday afternoon concerning the 2010 budget.
"In January of this year we began to reassess our expenditures and our revenues," City Manager Russ Blackburn said, "And we saw… that we were going to be experiencing some fairly significant changes from what we expected."
As a way to counteract the estimated $7.2 million deficit, Blackburn recommended raising Gainesville property taxes.
The proposal included increasing the millage rate from 4.2544 to 4.5297. This will raise property taxes by $41 per year for an owner of a $200,000 home. The city estimates that the adjustment will generate an additional $1.5 million.
A small increase in property tax may mean big adjustments for some large property owners, according to George Edwards, owner of "Gainesville Apartment and Condominium Guide."
In order to counteract increasing costs, property owners may raise rental rates.
"As costs are increased, owners have to do something to make up the difference," he said.
Edwards said the city needs to come up with other ways to deal with the deficit.
"I think this is a bad idea," he said. "The government should learn to live within their means like you and I have to."
