I'm a bit confused on this (me confused is not exactly news

).
All reasonable people seek to find economic solutions that do not involve raising taxes. However, sometimes you have no choice.
Now, is the government of Cleveland incapable of raising taxes without a referendum? Most areas could pass laws to raise taxes, but try to do so through referendum out of political cowardice. If the situation is that desperate, why can the government of Cleveland not simply pass a new tax, a tax increase, etc.
Not that this would be a solid solution IMHO. If you are loosing residents and businesses in huge waves, increasing their costs of stay is not going to motivate a new influx of taxpayers. But I am curious about the ability to raise taxes without voter approval there.
For innovative solutions take a look at other cities. For example, St. Louis. The largest unnecessary expenditure in the St. Louis Police Department is responding to false alarms. So enter a new ordinance. Alarm company licencing fees are increased, Alarm Companies must collect city taxes from all employees (even if the business is not located in the city and the employee does not live in the city) if they want the license. All alarms now require an annual police permit of 25.00 for residents and 50.00+ for Businesses. All false alarms are fined, starting at 25.00 and increasing with each ooccurence That fine is applied to the alarm COMPANY (who will pass the cost onto the consumer, but at least the City Knows they can pay, and will if they want to maintain their licence). Lastly, If you do not have a city alarm permit, the city police and fire departments will NOT respond to an alarm at your residence or Business.
This is going to be a winfall of cash for the city, as well as a cost reduction to the police and fire departments as all alarm companies finally start to follow the best standards possible to prevent false alarms rather then the best standards possible to make the most money (Though a VERY few, including the company I work for now, has been holding thier installers to the better standards all along).
There are other programs in other cities that are innovative ways to cut costs and increase revenues. Perhaps, Cleveland should start looking around at the rest of the country for ideas to include in a plan of action and the ACT.