Finances on target, city to hire additional firefighter

LIMA - The city is just about on target with its general fund revenue and spending half way through the year, Finance Director Steve Cleaves said Tuesday.

Because of that the city administration is allowing the hiring of an additional firefighter, Cleaves said.

City police and fire forces have been particularly strained during the past few years with a hiring freeze not allowing replacement of citywide staff lost through attrition. Four police officers were hired earlier this year to fill vacant spots and two firefighters are being hired to fill retirements.

"We've given the go-ahead for a third," Cleaves said. "All three should be in the rotation by the first quarter of the year and after that we'll see how the Fire Department's situation is and go from there."

Firefighters have recently worked substantial overtime, taking its toll on the forces' physical and mental health, department officials have said.

City Council's Finance Committee Chairman Tom Tebben advocated for hiring even more safety services officers, especially in the Police Department and encouraged officials to come to City Council with ideas.

Income tax, the single largest source of city revenue, is flat compared with the same period last year, Cleaves said, and the city had forecasted a 2 percent increase. However, the city is within 1.5 percent of its overall revenue estimate, Cleaves said during a first-half financial update to City Council Finance Committee members.

Two factors beginning the second half of the year on the revenue side have Cleaves concerned. The state reported total tax collections down nearly 10 percent and income tax collections down 13 percent from initial projections for July. And the city's income tax collections are down 5 percent in July compared with the same time last year.

However, the city is expecting a large tax payment at the end of this month, which would bring funds close to its target revenue, Cleaves said.

Just because things are going as forecasted doesn't mean they're good, Cleaves said. For example, the city forecasted a $2 million cash balance at year's end and that most likely will happen, but it means the city will lose $1 million from its $3 million cash balance at 2007's end.