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Cleveland sets Aug. 19 public hearing for proposed 2026 tax rate; budget workshop outlines utility increases, fund balances and personnel changes
Summary
Council approved Aug. 19 at 6 p.m. as the public hearing for the fiscal 2026 proposed tax rate and heard a staff budget workshop that discussed an excess I&S balance (~$700,000), a possible drop in the proposed rate (77¢ shown; attorney advised 76¢), a proposed 10% utility increase and other departmental budget items.
The Cleveland City Council on Aug. 12 approved a public hearing date of Aug. 19 at 6 p.m. for the proposed fiscal 2026 tax rate, clearing a procedural step while staff continues to refine rate calculations. The motion to set the hearing was made by Mr. Buckley, seconded by Mr. Ward, and passed 3–0.
Finance Director Pamela Harrison reviewed the tax levy and how the rate splits between I&S (debt service) and M&O (maintenance and operations). She told council the levy figures in the packet ranged near $6.1–$6.2 million and that the city has accumulated excess debt (I&S) collections of about $700,000 that — if certified by Liberty County — could be used to reduce the amount the city needs to raise this year. "This year, we all already have an excess of over $700,000," Harrison said. She noted the packet currently shows a combined rate around 77¢, and that the city attorney recommended adopting a slightly lower 76¢ to allow room for a subsequent downward correction once county certification and final numbers are in.
Council also received a detailed budget workshop preview. City leadership said the proposed budget prioritizes citizen services, employee compensation, and then supplemental items. Staff said they built a proposed 10% increase in utility billing into the budget and are considering an "institution rate" for very large water users (a higher base and incremental charge above a threshold) modeled on neighboring cities. Specific budget items discussed included a proposed police budget of about $4.15 million, proposed capital purchases (two vehicles for streets/facilities), and a proposed separate airport fund to improve revenue tracking and FAA compliance.
On reserves, Harrison reported the city’s general fund balance closed 2024 at about 66% (the charter requires 25%) and the proposed budget projects adding roughly $1 million to the fund balance under current revenue assumptions. Council and staff discussed using excess collections and pursuing grants to reduce the tax burden on residents while funding critical needs.
During public comment, resident Rodney Harrison asked whether senior citizens on fixed incomes could be exempted or otherwise shielded from a proposed utility increase; staff said a senior discount is under consideration pending a water-rate study. The council did not adopt final tax or rate changes at the meeting; the Aug. 19 hearing will allow the public to comment and staff to present certified numbers before final votes in September.
