Finance committee reports $11.35 million in city funds, flags $500,000 HARPA hold for University Square

The Joint Finance and Finance Advisory Committee met Sept. 9 at the Wiley Education Building to examine midyear financial results. Finance Director Dennis Kennedy told the committee that, as of July 31, the general fund unexpended balance was $6,026,998 and the total unexpended balance across all city funds was $11,354,127.

Kennedy said the city had posted $15,717,238 in total revenue through July — roughly 66% of the original $23,929,205 projection — and cautioned that a $500,000 payment from Cuyahoga County labeled as HARPA proceeds was sitting in a general-fund holding account earmarked for the University Square development. He said that accounting for the earmark will skew year-to-date comparisons until the money is formally assigned to the development project.

The review included several fund-level details: the building department recorded $657,759 after a January fee increase; housing department revenue was $106,793; and pool revenue was $102,067 (the year estimate was $112,500). The Street Maintenance Fund had posted $999,638 against an original $1,393,000 estimate; the Sewer Operating Fund had collected $267,316 year-to-date, with an expected reimbursement of roughly $250,000 from the Northeast Ohio Regional Sewer District for the Canterbury Project that Kennedy said should arrive by year-end.

Kennedy reported a transfer into the Facilities Capital fund to support the Yabi Building purchase in the amount of $1,050,000 and noted the capital improvement fund’s revenue (supported by 5% of income-tax collections) was $408,754 through July.

Committee members pressed staff on several reporting questions. Councilman John Rach pointed to line items with extremely high percent-used figures and “negative encumbrances”; Kennedy explained the report shows actual expenses and that some negative amounts reflect transfers or reimbursements that will be reconciled in an October year-end appropriation adjustment. He agreed to revisit specific line items and supply a list of one-time expenses when requested.

Vice Mayor Michele Weiss and others reviewed department expense pacing. Police and fire pension changes approved earlier in the year reduce the general-fund pressure going forward, Kennedy said. On reserves, Kennedy stated the council’s 15% reserve policy applies only to the general fund and noted the portfolio is laddered with most maturities in 2025 and the longest to 2029; he said the city typically maintains roughly $4.5 million in short-term (zero-to-two-year) holdings to preserve liquidity.

The committee also discussed operational contracts and service delivery. Weiss raised concerns about the animal control contract — budgeted at $10,000 and 83% encumbered — and asked that the contract be revisited; Kennedy and Chief Rogers said related budgets were otherwise on track. On emergency medical services, Weiss and Chief Perko confirmed runs are billed to insurance, and Kennedy said the city's EMS contractor, Lifeforce, charges about 7% of collections and that Lifeforce revenues have been on the order of $300,000 annually.

The committee asked for updated August numbers and more detailed documentation of one-time expenses and encumbrances at the next meeting. No formal fiscal actions were adopted at the session; the committee moved on to a separate ordinance discussion and adjourned at 7:12 p.m.