Brian Cummins: City of Cleveland 2016 Mayor's Estimate Budget

Friday, February 12, 2016

City of Cleveland 2016 Mayor's Estimate Budget

The following are budget documents and information being reviewed in Cleveland City Council. Per legislative requirements, the 2016 budget must receive approval by Council by April 2016.

Additional information and analysis will be provided as it becomes available.

Council Budget Hearings begin 9:00 am Tuesday morning, February 16, 2016, beginning with an introduction and comments about the proposed estimated budge by Mayor Jackson. Council hearings can be seen on Cleveland Channel 20 and are streamed live.

Documents provided below:

Schedule for the Cleveland City Council 2016 Budget Hearings (02/16-26/2016)
2016 Est. City Budget Presentation, Cleveland City Council Retreat (02/12/2016)
2016 Mayor's Letter of Transmittal (02/01/2016)
City of Cleveland 2016 Mayors Estimate Budget (02/02/2016, 508 pages)

Highlights of Friday 02/12/2016 Cleveland City Council Budget Retreat:

$566.7 million - Mayor's proposed estimated General Fund operating budget and a $1.6 billion total citywide budget. Represents an 8% increase from 2015 or $41.9 million.
$525.4 million - Estimated 2016 revenue, an increase of $8.6 million or 1.6% increase.
$41.4 million - Estimated Annual Operating Loss.
$42.1 million - Carryover balance from 2015.
$722k - Projected ending balance.
Limited capacity for expanding/enhancing services due to an approximate $50 million loss in annual revenue due to: $30 million in combined reduction in revenues from the State and an annual loss of $18 million in property tax revenues since 2007 attributable to the global recession.
$5.3 million in primary revenue losses for 2016

$1.8 million - Property Taxes
$1.7 million - Local Government fund and Estate Taxes.
$1.2 million - Fines and Forfeitures
$0.6 - Building Permits

$42.2 million in major cost increases for 2016

$31.2 million in salaries, benefits and health care increases from 2015 due to completed contract negotiations for the period 2013-15 and subsequent salaries and benefits for 2016.
$11.0 million in expenses to cover requirements of the DOJ Consent Decree.

RNC - $50 million grant for security. $30 million anticipated for personnel related expenditures and $20 million for Safety Equipment, communications and supplies. Note: details regarding security perimeters are expected by March-April and all equipment purchases and deliveries are required by June 15, 2016.
Municipal Income Tax - discussion of ballot issue for increasing taxes from current 2.0%

An increase to 2.25% would generate approximately $37 million in revenue annually.
An increase to 2.50% would generate approximately $80 million in revenue annually.

Preliminary 2016 Sources of Revenue
(click on the image for a larger view, pg 75 budget book - see below)