Cleveland City Council 06-10-25 Part 2
The City Council was presented with a balanced budget for fiscal year 2025–2026. While the proposed budget did not include a property tax increase, the council voted to continue discussions and left the door open to explore their funding options, which could include up to a 10.5-cent property tax increase.
As a part of the budget proposal, City Manager Joe Fivas outlined five major areas needing investment over the next five years: street paving, recreational facilities, transportation safety, public safety, and school capacity.
Manager Fivas highlighted that Cleveland’s tax rate remains significantly lower than peer cities with city school systems. He warned that inflation and increased population, projected to reach up to 86,000, will require strategic investment to maintain service quality.
Fivas also said public safety remains a top priority. Police and fire department budgets have grown by nearly $5 million each since 2015. A new fire engine is on order, and new police positions and safety technology are being funded.
The budget also includes a 3.5% cost-of-living raise for city employees.
Cleveland City Schools Director Dr. Jeff Elliot delivered a presentation to the council in support of constructing two new elementary schools. The city school board has formally requested that the Council help fund the projects.
With the rapidly growing population of our area, Dr. Elliot stressed that existing schools are nearing capacity.
During the “Community Investments” segment of the meeting, City Manager Joe Fivas outlined a proposal called “Pennies for Progress”. The plan leaves a property tax increase as an option up to a 10.5-cent per $100 of property valuation. The funds would support what Fivas identified as key priorities like paving of roads, turf fields & an indoor sports/aquatic complex, road widening & stormwater improvements, an animal shelter upgrade, and a new fire station.
Fivas confirmed that, alongside bond instruments and anticipated revenue streams, the 10.5-cent cap would adequately support the proposed project costs.
Councilman Tom Cassada moved to advertise to the public the 10.5-cent property tax increase cap, a second was made by Vice Mayor Ken Web. The motion passed 5–2, with Cassada, Webb, Moore, Estes, and McKenzie voting in favor and May and Goff voting no.
The motion does not mean the Council will raise property taxes. It means they have the ability to discuss an increase up to a 10.5-cent cap.
The city will publish the intent to consider exceeding the certified tax rate up to 10.5 cents, with further public hearings scheduled in the coming weeks.