Pepper Pike council adopts alternative tax budget for fiscal 2026 to preserve levy authority

The Pepper Pike City Council adopted a resolution approving the city—s alternative tax budget for fiscal year 2026 and declared an emergency to meet county deadlines.

The vote matters because the tax budget is a statutorily required step that preserves the city—s ability to levy property taxes for the coming year; without submitting a tax budget to the county budget commission the city could lose its ability to levy those funds.

Finance Director Peter (last name not specified) told council the tax budget is governed by the revised code provision he identified as "57 0 8 of the revised code" and administered by the county budget commission. He said the tax budget is not the final operating budget but is a required step to show the county there is a need to levy property taxes. Peter said the city must pass the tax budget by July 15 and submit it by July 18.

Peter reviewed the exhibit he had provided to council, which showed levies and preliminary totals. He summarized that the city—s property tax revenue projection in the exhibit was roughly $5.5 million, including about $2.8 million to the general fund and about $2.3 million to safety forces; more than 90% of the safety-levy amount he cited goes to the fire levy. He told council those figures are preliminary and the final operating budget will be adopted later in the year.

Council asked clarifying questions about "inside mills" and "charter/outside millage." Peter explained that each taxing district has up to 10 inside mills, noted that Pepper Pike shares inside-mill capacity with two school districts (Orange and Beachwood), and said the city also has outside/charter millage used for fire pension and that the bond retirement levy functions as a general pool to pay down debt. Peter explained that if the city were to stop levying a bond-retirement levy it would have to take affirmative action to remove it; it does not drop automatically as bonds are paid off.

Council moved and passed the resolution on roll call (unanimous yes recorded in the transcript). No amendments were proposed at the meeting.

Peter also flagged House Bill 335 (mentioned in the discussion) as pending legislation that could affect levy structures; he recommended council adopt the tax budget now to preserve levy options while the state legislative process continues.

No additional formal actions were taken at the meeting on the operating budget; Peter will bring the full proposed annual budget back later in the year for council review and adoption.