Cleveland Electric Illuminating Co. v. City of Cleveland

The question we must decide today is whether the Charter of the city of Cleveland forbids the release of Muni Light from any obligation to repay the sum of $29,450,273 previously expended by the city for the benefit of Muni Light. We hold that the city charter prohibits the use of tax-generated funds to subsidize municipally owned public utilities such as Muni Light.

The Charter of the city of Cleveland contains the following pertinent provisions:

Ҥ 41 Transfer of Appropriations.

“Upon the written recommendation of the mayor, the council may at any time transfer an unencumbered balance of an…