Cleveland braces for lower revenues

CLEVELAND, Tenn. — Flat property tax growth and less-than-expected sales tax revenue are bringing 2008-2009 budget concerns to City Hall.

City Manager Janice Casteel told the Cleveland City Council on Monday that a $1.3 million gap looms between revenue and expenditures. Cutbacks already have been made to whittle that difference to $800,000, she said. Department heads were meeting today to bridge the remaining difference.

“No paving, no police cars; that’s where we are,” she said. The cuts also include new personnel and the once-proposed assistant to the city manager position.

City government relies on “spring money” to get a boost into the next fiscal year, Mrs. Casteel noted. That is money budgeted for the current year but not spent. It is usually used for spring projects, such as paving.

“There is no spring money this year,” Mrs. Casteel said.

That also means the anticipated $5 million cost for a Cleveland High School science building may not be covered.

City Councilman Richard Banks searched for alternatives, including whether any county money might be available.

“I think they voted education as their first priority,” he said of the county commissioners’ listing spending priorities last week. Any money the county raises for education must include one-third for the city school system, based on student population.

See Wednesday’s Chattanooga Times Free Press for complete coverage.