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Ohio Auditor Says East Cleveland’s Revenues Lower than Expected

Thursday, August 7, 2014 at 5:45 PM

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East Cleveland city hall. (Nick Castele / ideastream)

The city of East Cleveland has hit a snag in its plan to borrow money to settle some unpaid bills as part of its road out of fiscal emergency. ideastream's Nick Castele reports the state was prepared to sign off on the plan this week, but is now going to wait.

Ohio Auditor Dave Yost said East Cleveland’s revenue isn’t flowing like expected, and says that means it’s not in line with a recovery plan the state approved. He says it’s not necessarily the city’s fault.

“Because they don’t have any control of the revenue streams that come in. but nonetheless the revenue’s not coming in. the plan is not matching reality right now,” Yost said in a phone interview. “They have to take additional steps….unfortunately that’s probably going to mean some further cuts.”

Most of the money East Cleveland expected to make from red-light cameras this year hasn’t come in yet. Camera revenue to date—$57,000—is nearly $900,000 lower than anticipated for the year.

Plus, a cell tower the city leased out wasn’t as lucrative as hoped, and Yost says he isn’t sure yet how much money the city’s new healthcare program will save. 

Sharon Hanrahan, the head of the state board overseeing the city’s budget says East Cleveland will still get ready to take out the loan, and the state will likely OK it. But now, the city has to iron out a few new wrinkles.

East Cleveland Mayor Gary Norton couldn’t be reached for comment.

An earlier version of this story compared current and estimated red-light camera revenues without specifying that the estimates were for all of 2014, rather than year-to-date.

Additional Information

Read Auditor Dave Yost’s letter dated Aug. 5 about East Cleveland’s revenues.

Read through East Cleveland’s financial recovery plan.

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