City's 2009 budget again flat, but stable for now

LIMA - With a national economy in a recession, the city's 2009 budget is a "fluid" document with very little growth, interim Finance Director Dan Hefner said Monday.

City Council received Mayor David Berger's 2009 estimated budget Monday. Hefner expects the bottom line to be closely watched and actively communicated with the council.

"Our projected expenses are growing only about $400,000 over 2008, about 1.2 percent," Hefner said. "That's very small growth."

Helping keep the budget in the black are good experiences with the city's health care fund, which has increased its cash balance by about $600,000 thanks to few claims.

"That takes some of the pressure off the general fund," Hefner said. "Hopefully we can maintain that good experience."

The city will maintain its practice of a limited capital expenses fund, evaluating purchases one at a time, Hefner said, and hoping for some money from the federal government in 2009 with infrastructure spending.

The budget as presented now is balanced, with revenue exceeding expenses by about $1.34 million. It's a cushion the city could well need in the coming year. The city's economy tends to lag about six months behind the national economy, Hefner has said, and state officials also announced a bleak 2009 on Monday.

A year ago the city lifted a multiyear hiring freeze and city finances have been on track this year.

"But we need to be cautious with our spending," City Council Finance Committee Chairman Tom Tebben said.