ALACHUA, Fl.

At its May 2025 regular meeting, the Alachua City Commission received a financial update revealing that the city’s mid‑year spending and revenues are fully aligned with the FY 2024–2025 budget plan. As of March 31, the city reported processing approximately 46% of its total expenses and 72% of anticipated revenue, with encumbrances accounting for 4% of the total amended budget of $67.38 million.

📌 Key Financial Highlights

Amended Budget: The city's total FY 2024–2025 budget stands at $67,378,713, a modest increase of $15,000 from the originally adopted $67,363,713.
Spending Milestones: With half the fiscal year behind, 46% of expenditures have been booked—exactly in line with the expected curve.
Revenue Collection: At 72% collected, the city is ahead of pace, largely thanks to steady enterprise funds and strong intergovernmental transfers—especially from infrastructure surtax and community redevelopment agreements.
Funds Breakdown:
General Fund: $20.65 million
Enterprise Fund: $36.86 million
Internal Service: $4.24 million
Debt Service: $797,657
Capital Projects: $40,414
Cash & Reserves: The city’s investment portfolio stands at just under $1.8 million, with $1.2 million in SBA instruments, $552,000 in short‑term holdings, and around $33.2 million in cash.
Debt: The only outstanding debt comes from the 2016 municipal bond series, as confirmed by Finance Director Tyler Williams.

🔧 What Mid-Year Stability Enables

Smooth Service Delivery
With expenses and revenue aligned, the city can continue service operations—public safety, utilities, parks—without disruption or funding shortfalls.
Grant‑Supported Projects
The uptick in “capital project” spending is due in part to a CDBG grant for infrastructure improvements tied to the Ben E. Keith distribution center—projects that are ahead of schedule and well‑positioned for completion.
Flexibility for Adjustments
The measly $15,000 budget increase reflects prudence and control, allowing the Commission to later rebalance or fund emergent priorities without cuts.
Debt Management
With minimal debt, the city maintains strong credit capacity to support future infrastructure or capital needs without risking fiscal strain.

🗣️ Reactions from Officials and Residents

Tyler Williams, Accounting Manager, summarized the mid‑year report succinctly:

“The city’s revenues and expenses are aligned with our budgetary fiscal plan… the budget is just a plan, and if needed, we can make adjustments as we go.”

Commissioner Jacob Fletcher, concerned about economic vitality, requested clarity on how capital‑project dollars could enhance Main Street and downtown revitalization.
Local business owner Michele Lee made the case that the city’s alignment offers an opportunity for loosening alcohol‑ordinance rules—particularly around micro‑breweries on Main—arguing that fixed budgets should not block business growth.

🔭 Looking Ahead: What to Watch

Second-Half Capital Projects
Funding tied to grants and community redevelopment will remain a focal point, especially for infrastructure around economic catalysts like Ben E. Keith.
Policy Adjustments
The Commission hinted at examining alcohol regulations to better support downtown development—leveraging the stable fiscal outlook as a foundation.
Public Hearings & Budget Tweaks
A budget amendment may be introduced later this year if new grant funding or departmental needs emerge—keeping the city’s fiscal structure nimble.
Monitoring Cash Flow
With $33 million in cash reserves, the city is buffered against economic surprises; however, staff noted the importance of maintaining that cushion amid state-level funding uncertainties.

✅ Final Take: Stability with Opportunity

Alachua’s mid-year budget review paints a picture of disciplined fiscal management and operational consistency. With no glaring deficits or revenue gaps, the city holds a strong position to advance capital projects, explore policy innovations, and respond to emerging needs without sacrificing financial health.

That said, city leaders now face strategic choices: Should this stability become a platform for economic expansions—like brewery-friendly zoning—or should cautious savings continue as their top priority? Public input, especially at upcoming Commission meetings, could be decisive.

City of Alachua Holding Steady—Budget Right on Track Midway Through Fiscal Year

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