Cincinnati City Council is beginning the budget process for the next fiscal year, which begins July 1. Council has until June 30 to approve a spending plan, and will spend the next few months hearing from residents and city departments to prepare for the vote.
City administration will host a "Budget Basics" virtual information session March 5; public hearings are scheduled for Feb. 24, March 3, March 12, and June 3.
This will be Council member Jeff Cramerding's fourth budget cycle, but his first as Chair of the Budget and Finance Committee.
"We decided to place the public hearings forward in the process, as early in the process as possible, to get people's input at the very beginning, before Council has even established its priorities," Cramerding told WVXU.
Cramerding says this budget process will be more difficult than the last few years, now that federal stimulus from the American Rescue Plan Act is no longer available to fill projected deficits.
"This budget is going to be very tight," Cramerding said. "Right now, we're looking at not being able to fill some vacancies, and certainly I don't see much room for new funding. And if we are looking at new funding and new initiatives, I think we'll be looking at cuts or efficiencies in other areas."
Cramerding says he expects Council to prioritize basic services like police, fire, parks and recreation, roads, and trash collection.
City Council will hear from residents first, at three public hearings in late February and early March:
- Monday, Feb. 24 at 5:30 p.m. at City Hall Council Chambers (801 Plum Street)
- Monday, March 3 at 5:30 p.m. at Dunham Recreation Center (4356 Dunham Lane)
- Wednesday, March 12 at 5:30 p.m. at Evanston Recreation Center (3204 Woodburn Ave)
Then, department heads will present their needs and budget requests to Council at several meetings in March and April. Council will then vote on a policy motion in early April; that's the document City Manager Sheryl Long will use to create the first draft of the budget.
Long is expected to transmit her first draft to Mayor Aftab Pureval by May 22, with a press conference expected May 23.
A final public hearing is scheduled for the evening of June 3. Residents can also give feedback on the budget proposal during regularly scheduled meetings of the Budget and Finance Committee (Mondays at 1 p.m.) and the full City Council (Wednesdays at 1:30 p.m.).
City Council has until June 30 to vote on the final budget, but typically the final vote occurs in mid-June.
See the full schedule below (story continues after):
Understanding the city budget
Where can I see budget information online?
Documents are published on the city website under the Finance & Budget page: Cincinnati-oh.gov/finance/budget
Once the city manager and mayor release their budget draft, they will be available on that page (one document for the proposed operating budget and one document for the proposed capital budget).
There are also links to prior years' recommended and approved budgets.
Why does a new budget start in July instead of January?
The city budget is based on fiscal year rather than calendar year. Fiscal year 2026 (often abbreviated as FY26) begins July 1, 2025 and ends June 30, 2026.
Where does city income come from?
The majority of revenue comes from income taxes, also called earnings taxes. Usually that makes up as much as 72% of overall revenue. The past few years have been different because of federal stimulus. Here's the breakdown of revenue for FY25 (the current budget):
- Earnings taxes: 63.6%
- American Rescue Plan Act: 4.4%
- Property taxes: 8.5%
- State shared revenue: 2.7%
- Casino tax: 1.8%
- Investments: 2.4%
- Parking meters: 0.0%
- Other revenues: 16.5%*
* Includes: license and permit fees; admission taxes; short-term rental excise taxes; buildings and inspections fees and permits, etc.
The current city income tax is 1.8% of gross earnings and the revenue is divided into three categories:
- 1.55% for the General Fund
- 0.15% for permanent improvements (capital)
- 0.1% for maintenance of city infrastructure
The most significant change to city revenue in recent years is a reduction in the Local Government Fund (state shared revenue). The state imposed cuts to this fund about a decade ago; the amount allocated to Cincinnati in FY25 (about $15.7 million) is a 61% reduction compared to 2011 ($40.7 million).
What makes up most of the budget?
Of the General Fund, 80.8% goes to personnel and benefits. And, 83.4% of city employees are represented by labor contracts negotiated with a union.
Who decides how to spend taxpayer money?
The process begins with City Manager Sheryl Long, who will work with her team to prepare the first draft of a budget. That draft is passed along to Mayor Aftab Pureval, who has the option to make any changes before it goes to Council.
Council has ultimate authority over the budget and must reach a majority agreement (five of nine members) to approve the spending plan.
How does a biennial budget work?
The city budget technically covers two years at a time, but Council still votes to approve funds every year.
This year, Council will vote on a biennial budget for fiscal years 2026 and 2027. Next year, Council will vote on a "budget update" to account for differences in actual revenue compared to expected revenue. Practically speaking, however, significant changes are typical in a budget update year.
What's the difference between operating and capital budgets?
The operating budget includes the services provided by the city, like police officer patrols, filling potholes, trash collection and operating the water treatment system. It includes wages for city employees and the cost of supplies needed to deliver services. The operating budget includes the General Fund, where City Council has the most flexibility in funding decisions.
General Fund dollars can be used for capital projects, but capital dollars cannot be used for operating expenses.
The capital budget covers purchasing or improving city assets like buildings and vehicles. It includes assets that cost at least $10,000 and last at least five years. The capital budget includes some cash and some borrowing.
The overall capital budget includes restricted funds like Metropolitan Sewer District capital improvements, the convention center, and stormwater management.
The city can also take on debt for capital projects, but the amount of debt is limited by the amount of revenue expected from taxes — the city has to bring in enough money to make payments on the debt. If the city wanted to take on more debt for capital projects, council would have to approve an increase in taxes. Right now, the city issues bonds based on property taxes.
The city can't issue bonds on assets not owned by the city; that also applies to city-owned buildings with long-term leases like Music Hall's 100-year lease. Playhouse in the Park is another example of a city-owned building that can't use bonded capital for improvements because of long-term use agreements.
Where can I learn more?
https://www.cincinnati-oh.gov/budget/budget-engagement/
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