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City councils

Bleak Financial Picture for Lima, Ohio: 2007 Budget Reveals Reductions and Deficits

Strategic Insights

— 1 min read

Lima, Ohio's mayor, David Berger, has submitted a 2007 budget that forecasts a bleak financial situation for the city. The $29 million budget includes a 3% reduction in labor costs, a $150,000 capital budget, and a projected unencumbered cash balance of $200,000 by the end of 2007. Finance Director Steve Cleaves attributes the budget cuts to a lack of revenue growth, stating that the administration has no choice but to reduce spending.

Key Takeaways:

  • The 2007 budget for Lima, Ohio, includes a 3% reduction in labor costs for all departments, amounting to a $870,000 (3% of $29 million) reduction.
  • The city's administration aims to achieve a 10% reduction in general fund labor costs, despite the 3% reduction already included in the budget.
  • Safety services are the top priority, but due to the high labor cost, cuts will be necessary, even in this department.
  • The city has approximately 400 employees, with about 300 paid out of the general fund and 180 in the Police or Fire departments.
  • The police and fire departments will be affected by the labor cost reductions, resulting in fewer officers, firefighters, and other personnel.
  • The city's budget growth is expected to be less than 2%, largely due to the 2% increase in salaries and benefits and the cuts in overall labor cost.
  • The budget submission marks the beginning of the city's 2007 financial planning process, with public hearings to be held by the Finance Committee before City Council approval.

Statistics:

  • $29 million: Total budget for 2007
  • 3%: Reduction in labor costs for all departments
  • $870,000: Estimated reduction in labor costs (.03 x $29,000,000)
  • 10%: Target reduction in general fund labor costs
  • 300: Number of city employees paid out of the general fund
  • 180: Number of employees in the Police or Fire departments
  • $200,000: Projected unencumbered cash balance by the end of 2007
  • $150,000: Capital budget
  • 2%: Increase in salaries and benefits
  • 2%: Expected growth in the budget

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