Cleveland council adopts FY2025–26 budget, sets 0.63 tax rate and approves fee changes including airport hangar bump

The Cleveland City Council on Sept. 16 adopted the fiscal year 2025–26 municipal budget and related measures, set a total property tax rate of $0.63 per $100 of assessed valuation, and approved a series of operational fee changes and administrative actions.

The council approved the budget, which officials said incorporated adjustments made since the August presentation, by a 5–0 vote. Council members also ratified the property‑tax rate reflected in the budget and then separately set the maintenance‑and‑operations and debt‑service components used to arrive at a total tax rate of $0.63 per $100.

Why it matters: The adopted package includes a 10% increase in city water and sewer rates (part of the master fee schedule), a $50 monthly increase to airport hangar rents (included in the master fee schedule and backed by the airport advisory board’s recommendation), and a fee change that raises event security pay to $50 per hour for alcohol‑serving events (the cost is passed to renters). Those changes affect resident utility bills, airport tenants and renters of city facilities.

Key council and staff comments

Pam Harrison, city finance staff, reviewed changes to the budget since the August proposal and answered council questions about certified excess tax collections and how those affect the debt service calculation. Harrison said recent corrections and certifications to the tax worksheet increased the amount of excess collections available this year and that part of those funds would be used in the fiscal plan.

Council members repeatedly described the budget season as difficult but said they appreciated staff work and cooperation across departments. The mayor and several council members noted the increases had not been applied to residential solid‑waste residential rates (city staff said increases from the city’s waste contractor affect commercial accounts only).

Votes at a glance (actions recorded in the meeting)

- Consent agenda — motion to approve consent agenda; mover: Mr. Buckley; second: Mr. Magwaters; outcome: approved; tally: yes 5, no 0 (motion carries 5–0).

- Item 11 — Approval of traffic control plan and authorization for cancer walk route and associated supports (Samuel Wiley Park route); outcome: approved; tally: yes 5, no 0.

- Item 12 — Presentation: Airport Advisory Board requested that council allow changes to airport tenant rates and to reinstate a rent‑increase provision tied to CPI not to exceed 5% per year; no formal council action other than discussion during the presentation.

- Item 13 — Second reading and adoption of a resolution approving the Economic Development Corporation (EDC) proposed FY2025–26 budget and projects; outcome: approved; tally: yes 5, no 0.

- Item 14 — Ordinance adopting the FY2025–26 municipal budget; outcome: approved; tally: yes 5, no 0.

- Item 15 — Separate vote to ratify the property tax rate reflected in the budget (required by state law); outcome: approved; tally: yes 5, no 0.

- Item 16a — Motion to set the maintenance & operations tax rate (component of total rate); outcome: approved; tally: yes 5, no 0.

- Item 16b — Motion to set the debt service tax rate at 0.219111 per $100 of assessed valuation; outcome: approved; tally: yes 5, no 0.

- Item 16c — Motion to adopt the total property tax rate of 0.63 per $100 of assessed valuation; outcome: approved by record vote (5–0). The record vote during the meeting showed each councilmember voting in favor.

- Item 17 — Resolution adopting the FY2025–26 investment policy (no substantive changes); outcome: approved; tally: yes 5, no 0.

- Item 18 — Resolution adopting the FY2025–26 master fee schedule (includes a 10% increase for water and sewer rates, a $50 increase to airport hangar rents, $10 increase to tie‑down fees and commercial solid‑waste increases tied to the contractor’s adjustment); outcome: approved; tally: yes 5, no 0.

- Item 19 — Authorization to issue a request for proposals (RFP) for citywide lawn/mowing services after the prior contractor terminated its contract; outcome: approved; tally: yes 5, no 0.

- Item 20 — Increase hourly security rate for city events serving alcohol (rate passed to renters) from $40 to $50 to match market off‑duty pay and encourage city officers to staff events; mover: Councilwoman Rachel Hall; outcome: approved; tally: yes 5, no 0.

- Item 21 — Change of council meeting dates: November meeting kept at Nov. 18; December meeting moved from Dec. 16 to Dec. 9; outcome: approved; tally: yes 5, no 0.

- Executive session outcomes reported in open session: approval of a 6‑month HB‑471 extension for a city employee at 30% (personnel matter); and authorization for the city manager to enter into a Chapter 380 economic development agreement with BCS (outcome: authorized; vote reported as 3–2 for the 380 authorization).

Selected clarifying details from the meeting

- Adopted total property tax rate: 0.63 per $100 of assessed value; debt‑service component stated as 0.219111 per $100; maintenance and operations equals the remainder of the total rate.

- Water and sewer rates: council adopted a 10% increase as part of the master fee schedule (applies to utility customers; council discussion noted sensitivity for residents on fixed incomes).

- Airport hangar rents: council approved a $50 monthly increase to airport hangar rental rates; airport board had recommended a percentage‑based approach capped at 5% year‑to‑year but council implemented a $50 per‑hangar increase as reflected in the master fees adopted.

- Security for alcohol‑serving events: council raised the hourly security fee charged to renters from $40 to $50; staff said the higher fee will be passed to renters and is intended to reduce reliance on out‑of‑town or non‑city security and to match market pay.

What happens next

City staff will integrate the adopted fee adjustments into the final budget documents before adoption deadlines and post the adopted budget and master fee schedule per statutory notice requirements. Staff also will publish the RFP for lawn services and handle procurement per the city’s procedures. The mayor and staff repeatedly asked the public and tenants to contact city offices for details and transitional questions.

Quotes

“Part of what changed is that we had excess collections certified this year and we’re using a portion of that to fund part of debt,” Pam Harrison said when council asked about certification of excess tax collections.

Councilwoman Rachel Hall, who moved the higher event security rate, said raising the rate would encourage officers to cover city events rather than take higher‑paying private off‑duty jobs.

The council took all votes in open session at the Sept. 16 meeting; most measures passed unanimously. The Chapter 380 economic development authorization reported a 3–2 vote in favor when announced after the council’s closed session.