Erie City Council 2027 Budget Work Session – November 4, 2026

On November 4, 2026, Erie City Council held a budget work session on the proposed 2027 budget. The administration reviewed the Mayor's Office and Mayor's Office of Community Affairs (MOCA) budgets, general fund revenues, and general government expenditures, corrected a number of printed errors, and outlined upcoming ordinances and follow-up work. No formal votes were taken.

Budget Overview and Staffing Changes

• The Mayor's Office budget was corrected to remove a 3% increase for chief of staff; administration said the figure in the budget book was an error and the line stays at its current level.
• The executive secretary position, eliminated in spring at $57,011, is proposed to be restored at $55,000. The position is currently unfilled.
• Special events work is being consolidated: Hunter Lightle moves to MOCA, and Dave Rocco's public-works special-events position is eliminated.
• MOCA staff generally receive no 3% increases because they received increases last year. Proposed salaries include: special events coordinator and coordinator of media and public affairs at $62,500; neighborhood engagement coordinator from $53,500 to $62,500 (a $9,000 increase); and MOCA manager from $57,000 to $69,000 for parity with other managers. The Mayor acknowledged the manager increase is large and tied it to expanded duties after earlier cuts.
• Earlier cuts eliminated the citizen response coordinator and digital media design positions; administration said these cuts and staffing consolidations produce significant savings.

Revenue Discussion

• A one-mill real estate tax increase is proposed. The value of a mill is about $3.154 million, but at roughly 90% collection the city expects about $2.8 million. An ordinance will be introduced at the next council meeting.
• The budget appropriates $6.5 million of restricted fund balance, described as rainy-day money. The fund balance is expected to be about $25 million at the end of 2026, but lease prepayment money may be largely used up this year.
• Earned income tax is projected at about $10 million in 2027. The pension levy is moved to a separate fund in the presentation, dropping from about 0.65% to about 0.5%.
• The local services tax has been $52 since the 1950s; removing the state cap and doubling it would add almost $2.5 million per year. Council planned to send individual letters to state legislators, and the Mayor said current representatives are supportive and he has spoken with Majority Leader Bradford.
• Parking tax revenue is increased to include private-garage taxes and an anticipated $1 million memorandum of understanding from the Parking Authority; staff said the estimate may be a little high and should be at least $1.5–1.6 million.
• The amusement tax is proposed to rise from 3% to 5%, with an ordinance to update collection processes and digitize administration. Councilor Flores supported the increase, saying visitors should pay a bit more for city services; members also discussed skill-game signage and collecting from events and tickets.
• A possible hotel tax increase was noted as needing state approval; the county executive is open to petitioning the state, and added revenue could be dedicated to the city or economic development.
• Only about five entities currently make PILOT payments. Councilor Flores noted 54% of her district is tax-exempt and contrasted a $20,000 contribution with an $800 million endowment, saying the math does not math. The Mayor committed to pursuing meaningful, countable PILOTs or donations in 2027; most donations currently go to the capital fund, not the general fund.
• The school district reimburses half of the CRIS tax-increment payment; the related expense appears in general government, and council called for more clarity on the mechanics.

General Government Expenditures

• Employee payouts are budgeted at $1.3 million. A council-book page showing $1.5 million is an error; page 64 is correct. Payouts reflect many expected retirements, including firefighters in a contract-negotiation year.
• Seasonal wages for lobby clerks increase from $30,781 to $39,000.
• Professional services, education and training, centralized communication, and postage were reviewed. The $42,000 postage contract with Midwest is under review; the city is considering in-house processing or another vendor.
• A new emergency management services line was opened for the tree emergency; $242,000 has been spent of the $3 million line, total costs are estimated around $1.5 million, and about $600,000 of that is salaries and equipment that would return to fund balance. Staff are working with PEMA on possible reimbursement; combined costs would need to reach $2.6 million for full reimbursement.
• Council asked for a detailed risk-fund breakdown after vehicle accidents and claims. The Mayor said police leadership is treating the issue seriously; final risk and health-insurance numbers arrive in late November.

Key Outcomes

• No formal votes were taken; this was a budget work session.
• Administration will correct the chief-of-staff 3% error and the council-book employee payout discrepancy.
• Council opted not to schedule an additional meeting for the October financial statements and asked to receive them directly.
• Expected ordinances at the next council meeting include the 1-mill real estate tax increase and amusement tax rate/process updates.
• Council will send individual letters and press state legislators on the LST cap; the Mayor will take on PILOT discussions in 2027 and will discuss the Parking Authority MOU with new board members.
• The next budget session will cover DNED and all its bureaus on Tuesday, Nov. 24, 2026, not Thursday, Nov. 26.