CLEVELAND HEIGHTS, Ohio — As we roll into 2025, lots of cities are finalizing next year's fiscal budget. For Cleveland Heights, City Council members and the Mayor are in a gridlock.
On Dec. 16, the Cleveland Heights City Council shot down the Mayor's budget in a 6 to 1 vote.
This is the city's third fiscal budget while operating under an elected mayor.
"There were a lot of red flags early on. We lost our finance director a year ago. We lost our city administrator who helps prepare the budget. We also lost our interim finance director during the budget hearings. There was information we didn't have. [The interim finance director] was understaffed, overworked, and we saw that in the quality of the budget materials," City of Cleveland Heights City Council President, Tony Cuda said.
Cuda added there is a variety of information City Council hasn't been shown in order to rubber stamp a full-year budget:
- The City's unencumbered balance for 2024;
- October through December financials;
- The results of the state's 2023 financial audit;
- The results of the council's independent CPA firm's review of the 2024 budget;
- The results of the Archer salary study;
- Estimates for other probable salary increases;
- A capital budget based on real numbers, "not projections";
- Council's outstanding unanswered questions
"[City Council members] didn't really take the opportunity in those public meetings where directors were present to ask more of the questions they wanted and instead they decided they were going to vote the budget down," City of Cleveland Heights Mayor Khalil Seren told me.
Seren added his office has provided City Council members with more information related to the budget than ever before.
A temporary budget was then approved on Dec. 19. It covers the first three months of the new year to ensure city operations continue uninterrupted, employees are paid on time, and essential services remain available to residents.
What funding will go where the other nine months of 2025 hasn't been finalized yet — leaving it in the unknown for now.
"The actions the city council has taken created a sense of instability here and unnecessarily. I think the thing that makes it that much more troubling is that this was not a necessary thing," Seren stated.
The Mayor said one of his biggest concerns is how to book city activities and plan for the future if the city is unable to sign contracts due to a lack of concrete funding.
"We have to find out how we can book shows in June when we don't have an appropriation that lasts through June. How can we make a payment in June? How does that work if we don't have an appropriation that lasts?," Seren asked.
Although legal in Ohio and normal for some local governments, this is the first time in Cleveland Heights history that a partial fiscal budget has been approved.
"It's problematic for us," Seren shared. "We're recruiting inspectors. We're recruiting permit [technicians]. We're recruiting these people that have specific qualifications. And we've already got somebody who heard about this three month budget and decided to stay where they are instead of joining our team. That's troubling in and of itself. It could have been avoided because again, this wasn't a necessary development."
Cuda said the City Council has offered the Mayor's Office an extension of funding if needed.
"[The mayor] knows that we're open to whatever the needs are and we'll make it work," Cuda said. "These temporary budgets are done all the time and they work. It may not always be the best way to do things, but in this particular case with so many red flags and so many unanswered questions, this was the responsible thing to do."
Seren proposed a revised budget Monday night for a first reading, but without enough council members in attendance, quorum wasn't met.
"I regret to inform the council and anybody who continues paying attention, but there will be a lot of work on this for the council to do. This is in their court now. They have to work with me in order to take a look through this budget," Seren stated. "I will call more special meetings."
So far in December, City Council has held five public meetings to reach an agreement on the budget.
"We can't just focus on the first three months. That's not how we do planning," Seren said. "I'm hoping they don't throw unnecessary hurdles in our way to get to the resolution."
Cuda told me City Council has tried working with Seren to reach a finalized budget but that communication has lacked. He said he hasn't received a response to his emails since November 24.
"President Cuda has regular access to me. None of the council members have municipal experience. We can't say the same about me. I think it's categorically false that I am not qualified to provide them with explanations about the budget that I presented to them. I will not, and I have not denied that this has been a more complicated process than it has been the first two years and the reason for that is out of my control," Seren noted.
The legal deadline for a full year's fiscal budget is April 1.
Seren is hopeful a budget will be approved by mid-January. Cuda thinks otherwise.
"I don't think that's possible, but I do think that we can do it earlier than March 31, which is when the temporary budget expires. I think we can do it well in advance of that.
There's information we'll have by the end of January that will really help us get a framework," Cuda said.
With a delay in finalizing the 2025 fiscal budget, the Mayor is questioning if this is part of a political game.
Not only is the Mayor up for re-election, but four council members are too.
"It's a little telling that we're on the precipice of the first re-election of a mayor and the budget preparation for a year in which we are going to have all of this electoral politics in Cleveland Heights. It's concerning if there's any motivation there that would interfere with the running and the funding of this government because that should be completely separate from any political consideration or discussion that we have," Seren said.
Cuda responded to the Mayor's statement by saying the delay has nothing to do with politics on City Council's end.
"The mayor has looked very political this whole time," Cuda said. "He sent out a lot of false information, a lot of inflammatory information. What he should have been doing was spending his time answering our questions."
The Mayor is encouraging residents to pay close attention to the budget process and participate in City Council meetings.
"Let's move forward and move on to progressing in Cleveland Heights.
The next Cleveland Heights City Council meeting will be on Monday, Jan. 6.
