Beachwood Returns to Full Tax Levy, Defends AAA Bond Rating at June 15 Council Meeting

Beachwood City Council met Monday, June 15, and took action on a range of measures covering fiscal policy, economic development, city services and upcoming community events. The meeting was held at Beachwood City Hall and presided over by Council President Danielle Shoykhet.

City Returns to Four Mills for First Time in Three Years

The most significant financial action of the evening was council’s unanimous adoption of the city’s alternative tax budget for fiscal year 2027, formally restarting the annual budget cycle and restoring Beachwood’s standard property tax levy after a three year reduction.

What the Tax Budget Does

The alternative tax budget is the first step in the city’s annual budget process. It signals to Cuyahoga County how many mills Beachwood intends to collect in 2027, based on 2026 property values. The county will respond in the fall with a certificate of estimated resources. Council will then formally accept those rates before moving forward with the full budget process.

The Millage Breakdown

For tax year 2026, collected in 2027, Beachwood is returning to levying four mills total. That four mills is composed of two parts. The first is 1.6 mills of inside levy, which flows to the general fund after county Board of Health fees are subtracted. The second is 2.4 mills of charter millage. Within that charter millage, 0.9 mills is designated to cover debt service costs and 1.5 mills goes to the police pension fund.

For the three years prior, the city had levied only 1.6 mills rather than the full four. Finance Director Heiser told council that based on current calculations, it will take approximately 12 years to recover the revenue the city chose not to collect during that period.

Not a Tax Increase

Council members were clear on this point during discussion: the return to four mills is not a tax increase for residents. The millage rate itself has not changed since 1994. One council member confirmed the move is revenue neutral for property owners, as the levy simply restores what had previously been collected rather than introducing a new rate.

The AAA Bond Rating Connection

Council members raised the importance of the city’s AAA bond rating during discussion of the tax budget. Finance Director Heiser described it as a significant point of pride, noting that Beachwood is the only city of its size in Ohio to hold that designation. The city holds AAA ratings from both Moody’s and Fitch Ratings.

The rating matters in practical terms because it allows Beachwood to borrow money at lower interest rates. A key factor bond rating agencies consider is the gap between what the city is authorized to collect and what it actually levies. Beachwood’s charter permits the city to collect up to 9.2 mills, yet the city collects far less. Rating agencies view that unused capacity as evidence of fiscal discipline and financial strength.

Council members noted that continuing to forgo the four mill collection could have had a negative impact on that rating. Resuming the full levy is part of protecting the city’s long term financial standing.

Autism Therapy Center Coming to Commerce Park

Council unanimously approved a job creation incentive grant agreement with Building Block Therapy, LLC, an autism therapy and behavioral health company relocating and expanding to 23600 Commerce Park in Beachwood. The company, in business since 2013, is purchasing a building in the city and plans to create 45 new jobs with a combined payroll of $2.225 million over three years. Positions will include both administrative and clinical roles.

The incentive package offers a 30% tax credit over three years, contingent on meeting employment and payroll targets. The agreement requires the company to reach 75% of the projected total payroll, and clawback provisions are included. Economic development staff noted that complementary care services and organizations in the Commerce Park area would benefit from the new center’s presence.

Food Trucks Must Be Inspected for Residential Events

Council passed an amendment to the city’s food truck ordinance clarifying that food trucks operating at private residential events must still obtain city fire department inspection and approval, even though no permit fee is required for residential use. Previously, the inspection requirement applied clearly only to food trucks operating in commercial and office districts.

Under the updated rules, the responsibility falls on the food truck vendor, not the homeowner hosting the event. The city maintains a list of licensed food trucks, and residents can contact the building department to verify which operators are approved. Administration noted the city is typically aware of food truck bookings through the licensing process and works from that list to monitor compliance.

Richmond Road Traffic Signal Project Moving Forward

Council authorized the Clerk of Council to advertise for bids on the Richmond Road Corridor Traffic Signal Upgrade Project, moving that infrastructure improvement closer to the construction phase.

Snowplow Rebuilds Approved Despite Tariff Costs

Council approved the purchase of parts to rebuild five Wausau snowplows ahead of next winter, accepting a quote of $28,820.50 from Fallsway Equipment, the lowest bidder. Public Works officials noted the quote includes a tariff surcharge, as parts are sourced from Canada, but Fallsway remained the lowest option even with that added cost. New Wausau plows run well over $20,000 each, and the rebuilds are expected to extend the life of the equipment by seven to ten years.

City Approves Depositories, Legal Services and Easement

Council approved the designation of city bank depositories for the next five years, with Sevista Bank and First National Bank added to the approved list. Dollar Bank continues as the primary operating bank and Wells Fargo is used as an investment depository. Council also renewed its agreement with the law firm Kutak Rock LLP for economic development legal services, covering matters such as community reinvestment areas and tax increment financing. Additionally, council authorized a permanent and temporary construction easement for the installation of sanitary and storm sewers connected to improvements at the Fairmount Temple property.

Fall Festival Inflatables Secured for October

Council approved a rental agreement with Super Games for inflatables, rides, games, signage and staffing for the 2026 Beachwood Fall Festival, set for Oct. 11. Community Services Director Schroeder noted the vendor supplies everything in one contract, which is more efficient than sourcing from multiple suppliers.

Edgewood Drive Rezoning Heads to Public Hearing

A proposed rezoning of three properties on Edgewood Drive from single family residential to public and institutional district was placed on second reading and referred to a public hearing scheduled for July 13. Planning and Zoning Commission returned the ordinance with a unanimous positive recommendation. The rezoning requires no variances and meets all requirements of the U5 district, according to city staff.

Community Events and Upcoming Meeting

Mayor Justin Berns reminded residents that the fourth annual Juneteenth community celebration is scheduled for Friday, June 20, from 4 to 7 p.m. at Beachwood High School Football Stadium. The event is organized in partnership with the Beachwood School District and the district’s African American Affinity Group. Shuttle service will run from Fairmount School to the stadium entrance. If weather forces a change, the event will move to the middle school.

Community Services Director Schroeder also announced that Teen Night at the court is scheduled for Tuesday, June 16, from 6 to 8 p.m., featuring pickleball courts, sand volleyball, a gaga court, yard games and a DJ.

Council Vice President Jillian DeLong announced that a Coffee with a Councilmember event will be held Sunday, June 28, from 10 to 11 a.m. at Nervous Dog Coffee. Police Chief Daniel Grispino will join as a special guest.

The next regular Beachwood City Council meeting is scheduled for Monday, July 13, at 7 p.m. in Council Chambers.