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Cleveland Council moves FY2027 budget and tax-rate ordinances forward on first reading; school budget presented
Summary
Council approved first readings of the FY2027 budget and a $1.2632 tax rate and adopted consent appropriations; Cleveland City Schools presented a $72.7 million FY2027 budget. Most consent and ordinance votes passed 6-0 on first reading.
The City Council introduced and carried first readings of the city’s FY2027 budget and the 2026 tax rate at its May 18 meeting, while the Cleveland Board of Education presented its FY2027 budget to council staff and members.
Councilman Bill Estes moved and the council voted 6‑0 on a first reading to move Ordinance 2026‑17 (Adopting the FY2027 Budget) forward. Vice Mayor Ken Webb moved and the council voted 6‑0 to advance Ordinance 2026‑18 setting the 2026 tax rate at $1.2632 per $100 of assessed value. The budget and tax ordinances were presented in full during the meeting and will return for second reading as required by city procedures.
Dr. Jeff Elliott told council the Cleveland City Schools Board unanimously approved its FY2027 budget at $72,713,372 and thanked the city and Cleveland taxpayers for sales tax contributions that fund capital projects such as a replacement cooling tower and school‑bus technology. He said 63.5% of the school budget comes from the State of Tennessee, with the balance from local sources including the city and county.
On the consent agenda council approved Resolution 2026‑40 (FY2027 appropriations), Resolution 2026‑41 (Cleveland City Schools Federal Project Fund), Resolution 2026‑42 (annual debt management policy review), and other routine resolutions; a notable item, Resolution 2026‑43, set Cleveland Utilities’ tax‑equivalent payments to the city for FY2027 (Electric $2,712,744; Fiber $91,729; Water $279,859; Wastewater $267,556). The consent agenda passed unanimously.
Why it matters: advancing the budget and tax ordinance on first reading begins the formal adoption process and sets the city’s fiscal framework for the coming year including the local contribution to school capital and the municipal appropriation schedule. The Cleveland Utilities tax‑equivalent figures are a material transfer from the utility enterprise to the city budget and are effective July 1, 2026.
Next steps: council will consider second readings and final adoption in subsequent meetings; staff will continue budget‑related briefings and capital planning.
