Council Approves 2013 Tax Budget

With the passage of its 2013 tax budget, the city has evidence that it needs more property tax revenue.

Council unanimously approved the budget Monday evening. Though officials won't begin discussing Shaker Heights' operating budget until the fall, the tax budget shows an operating revenue deficit of just over $2 million. The city's early estimated revenue is $36.9 million, compared to more than $39 million in expenditures.

Such a shortfall is needed for the city to get "inside millage" for more property tax revenue through the Cuyahoga County Budget Commission, Shaker Heights Finance Director Bob Baker said. Under Ohio law, county budget commissions can allocate portions of 10 mills to local governments that display a need. Baker said the city has received 4.4 mills since at least 1987.

"Every jurisdiction that is getting inside millage has to demonstrate that they still need it," Baker said. "The tax budget is the vehicle by which we demonstrate to the county that we still need our share of the real property tax.

"There is no tax budget adopted in Ohio that shows a surplus," he said. "If it did, you don't need the property tax."

Baker said the "real" budget would be presented to council in November. He said it was too early to speculate what that budget would show.

Including the 4.4 inside millage, Shaker gets a total of 5.5 mills. In Cleveland Magazine's annual "Rating the Suburbs" issue, Shaker's property tax rate — which totals $3,630 per $100,000 of valuation — .

Council also approved sending its tax budget to the county budget commission by July 20.

Here are a few more resolutions adopted on Monday:

• The adoption of the Cuyahoga County All Natural Hazards Mitigation Plan. Fire Chief Kevin Jacobs said approving the county's plan update would expedite receiving FEMA funds in the event of a disaster.

• Council confirmed Mayor Earl Leiken's appointment of Dr. Ronald G. Fountain to the Civil Service Commission. Fountain will replace William Gaskill, who is relocating to the Akron area. The term expires Dec. 31, 2015.

• Council approved applications and authorized acceptance for grants from the Ohio Department of Natural Resources and the Cuyahoga County Municipal Energy Program. The maximum amount for the MEP grant is $27,490. It will help pay to implement energy efficient projects at city facilities. The ODNR grant for $6,250 will pay ash removal and canopy restoration for trees throughout the city.