Cleveland Mayor Tom RowlandCLEVELAND, Tenn. -- City staff presented a proposed $220 million budget to the Cleveland City Council Monday that does not have any additional property tax.
The proposed budget for fiscal year 2013, which begins July 1, is 4 percent larger than the current budget. It does not include a sanitation fee increase or a salary increase for city employees.
However, both the city school system and Cleveland Utilities have employee raises in their proposed budgets.
"We've got a lot of well-trained employees that we don't want to go anywhere else," Mayor Tom Rowland said.
He has said he would like to include a pay increase for other city employees.
"I think everybody here is of one accord that city folks should have the same amount as schools and Cleveland Utilities," City Councilman Dale Hughes said.
"I desperately would like to give our employees a raise," City Manager Janice Casteel said.
City employees have a larger workload already, she said, because 15 positions are vacant and seven others have been eliminated.
Casteel said the city will re-bid employee health insurance plans this year, and the cost likely will go up.
"I would hate to see employees receiving less pay because of health insurance increases," Councilman Bill Estes said.
Casteel said sales tax revenue has been increasing, but that money is for capital projects, not operational expenses, including salaries.
Council members discussed giving year-end bonuses in lieu of raises, something they approved in December 2011. But if city employees get a raise without a property tax increase, then departments must find another $330,000 in cuts, Councilman Richard Banks said.
Casteel already is warning the council about the budget for fiscal year 2014. In the proposed 2013 budget, the city receives $900,000 from Bradley County, half the annual payment from a fire contract that is ending.
In 2014, the entire $1.8 million will be gone from the city budget, she said.
Contact staff writer Randall Higgins at rhiggins@timesfreepress.com or 423-314-1029.