Cincinnati City Manager Sheryl Long proposes addressing a $29.5 million deficit in the next budget by making $20.2 million in cuts while bringing in $17.2 million in additional revenue.
The projected deficit is in the general fund, which is part of the operating budget; that's separate from the capital budget, which covers physical assets and has its own revenue sources.
The proposed budget includes savings from some service reductions Long says were recommended by the Cincinnati Recreation Commission, such as reduced hours and services at some Recreation Centers, and opening public pools one week later than last year; those reductions were based on utilization data from last year. More info on that below.
Mayor Aftab Pureval made several adjustments to the city manager's plan, including reducing the amount set aside for the Farmer Music Center and earmarking $1 million for BLINK in October.
The budget draft now heads to City Council. A public hearing is scheduled for Monday, June 1 at 5:30 p.m. at City Hall. A final budget must be passed by the end of June, but Council typically completes the process by the third week of June. The fiscal year begins July 1.
You can see the full budget proposal on the city website.
Click to jump to a specific topic:
- City manager's plan
- Mayor Pureval's changes
- Farmer Music Center
- Railway sale spending
- General fund
- Public safety
- Human services funding
- How to understand the city budget
City manager's plan
Long's proposed reductions include not filling vacant positions, saving $8.5 million.
"I don't make this recommendation lightly, as I know it means our departments will need to do more with less," Long said. "I do caution that any further cuts to positions will have a negative impact on service delivery."
Long also proposes delaying the next recruit class for the Cincinnati Fire Department from summer 2027 until that fall, and then continuing to schedule recruit classes in the fall instead of summer.
That proposal is not in line with what City Council identified as its budget priorities, which said that recruit classes should continue on schedule. Long says the change is aimed at long-term savings, not just a short-term benefit.
"The change will result in less overtime usage within CFD," Long wrote. "Working to train our recruits requires additional work from CFD staff, and timing these additional responsibilities during a less popular time for paid vacation enables CFD to manage overtime more effectively."
About $1 million in savings is expected through "service reductions," including HR training resources and "reductions of various contractural services."
This category also includes reduced hours and services at some Recreation Centers "based on data regarding utilization of centers and programming along with a reduction of part-time maintenance staff." The Recreation Commission also is opening city pools one week later than last year, "based on utilization data."
"It was a CRC decision, and I trust them to understand their operations," Long said.
Budgets for the mayor's office, City Council offices, and Clerk of Council offices are all reduced 5.1%
Mayor Pureval's changes
Mayor Pureval praised city administration for finding efficiencies to balance the budget.
"The budget we now consider reflects our preparation for this moment, the reality that projected expenses continue to outpace projected revenue, and the importance of aggressively investing in growth throughout our neighborhoods," Pureval said in a statement.
Pureval proposes $1 million for a new disparity study, "to gain an updated picture of where our contracting and economic development tools can and should be reviewed."
He also recommends spending for two special events: $1 million for BLINK, the art and light festival scheduled for this October, and $100,000 for Black Tech Week.
On the capital side of the budget, Pureval wants $500,000 for unspecified "physical public safety improvements" at Fountain Square. That will include lighting and cameras.
"We're partnering with residents and business owners to really take a look at Fountain Square and understand what can be changed about the physical layout with respect to where pedestrians are walking, with respect to lighting and other kind of blind spot areas, and making ... the physical location safer," Pureval said. "It's not just better for residents, it's also better for our public safety professionals."
Pureval also reduced the amount of money for the Farmer Music Center (more on that below).
See the mayor's full budget statement and adjustments below (article continues after):
Farmer Music Center
In March, City Council voted 5-4 on a resolution promising $8 million to the Cincinnati Symphony Orchestra and MEMI for a new venue to be constructed near Riverbend Music Center.
The project, named the Farmer Music Center after a philanthropic donor, is expected to cost a total $160 million, with more than half of that cost yet to be raised.
The source of the funding is the capital budget, which is separate from the part of the budget with a projected deficit.
The resolution included a clause that the funding is contingent upon the city administration's review process, including underwriting to ensure feasibility and confidence the project can move forward.
The budget draft released Friday does not indicate whether that financial analysis has been complete, but City Manager Long has proposed only $6.5 million for the Farmer Music Center.
"My job was to be responsive to Council in the budget motion," Long said. "There was an analysis done, and what we feel was that the analysis that was provided [showed] the project would actually occur even if we did not give them the resources."
Mayor Pureval's budget adjustments further reduced that to just $2 million.
"My opinion is that this project looked like it was likely going to happen with or without city dollars," Pureval said. "What was not guaranteed was the tax revenue back to the city."
Pureval proposes an agreement with MEMI guaranteeing tax revenue for 10 years. He also wants the city to purchase two lots adjacent to the Farmer Music Center site.
"This project has the potential to provide real, tangible benefits to our local economy and our local culture," Pureval said. "We, as a city, have been clear about our strategies to encourage more live events, and this is a tremendous opportunity to advance that goal."
Council member Jeff Cramerding, chair of the Budget Committee, voted against the resolution promising $8 million for the project. He says the mayor's proposal "draws us closer to a realistic plan."
"It's still very polarizing with my colleagues and we will see what council does with it," Cramerding told WVXU.
Railway sale spending
In 2023, voters approved the sale of the city-owned Cincinnati Southern Railway to Norfolk Southern. The $1.6 billion sale revenue was placed in an investment trust fund managed by an independent board of trustees. That fund has reached nearly $1.9 billion and is continuing to grow.
A portion of the earned interested is transmitted to the city to spend on maintaining or replacing existing city-owned infrastructure.
In fiscal year 2027, the city has $58 million in railway sale revenue; it is the largest source of revenue for the capital budget, which totals $99.4 million for existing infrastructure this fiscal year.
Long says the city plans to purchase land this year to eventually replace two fire stations, but the locations have not been identified.
See a breakdown of "Cincy on Track" spending proposals below (article continues after):
General fund
The operating budget includes services provided by the city, like police 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.
Public safety
The Cincinnati Police Department is budgeted for $217,140,230; that's about 35% of the general fund, and a 15.2% increase from FY26.
Police officers are represented by a labor union and are currently under a contract that expires during FY27. Officers are budgeted for a 2% wage increase this fiscal year.
Long recommends an additional $1.6 million for CPD's drones as first responders program.
The Cincinnati Fire Department is budgeted for $168,413,950; that's about 27% of the general fund, and a 5% increase from FY26.
Fire fighters are represented by a labor union and are currently under a contract that expires during FY27. They are budgeted for a 1% wage increase this fiscal year.
Long is recommending an additional $1.1 million to continue health and cancer screenings for CFD sworn staff.
The police and fire departments, combined, make up about 62% of the general fund in the proposed FY27 budget.
Public safety also generates revenue for the city. This revenue comes from both police and fire departments, including from emergency transport services, impounded vehicle fees, police detail charges, fire inspection fees, false alarm fees and police auction proceeds.
Public safety is projected to bring in $34.6 million in the next fiscal year, a roughly 65% increase compared to the current budget. The increase is partly thanks to an increase in off-duty details and new revenue from Medicaid reimbursements that the city is pursuing for the first time.
Human services funding
The city's Human Services Fund is administered by the United Way, which uses a competitive application process to issue grants to organizations based on Council-established priorities.
Grants are awarded every two years as part of the city’s biennial budget process; this is an update year, so the same organizations awarded last year will get funding again this year.
The Human Services Advisory Committee, or HSAC, reviews all applications and decides which ones to fund; their recommendations go to Council for a final vote.
The budget draft includes about $10.3 million for the fund, about 1.5% of the general fund.
From 2004 to 2017, the city budget for the HSF did not exceed 0.8% of the general fund. Council approved a plan in 2017 to incrementally increase the percentage for the Human Services Fund until it reached 1.5% in 2023.
How to understand 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
There also are links to prior years' recommended and approved budgets.
Where does city revenue come from?
The majority of revenue comes from income taxes, also called earnings taxes. Here's the breakdown of projected revenue for FY27:
- Earnings taxes: 63.6%
- Property taxes: 8.1%
- State shared revenue: 2.7%
- Casino tax: 1.7%
- Investments: 4.7%
- Parking meters: 0.2%
- Other revenues: 19%*
* 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
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.
Last year, Council approved a budget for fiscal year 2026 and fiscal year 2027. This 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.
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 2027 (often abbreviated as FY27) begins July 1, 2026 and ends June 30, 2027.
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.
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 also can 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.
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