LIMA, Ohio (WLIO) — Lima city leaders are examining ways to maintain financial stability as federal and state governments consider funding cuts that could impact local budgets.
Mayor Sharetta Smith said the city remains financially stable at this time, but the shifting landscape of government funding may require Lima to take proactive steps to ensure essential services are not affected. The city relies on state and federal dollars to support a variety of beneficial programs for residents.
Smith also expressed concern about Lima’s primary source of revenue — income tax — which generates approximately $24 million each year. She said the city is already seeing a decrease in income tax revenue, a trend that could pose challenges if not addressed early.
“In order for the city to be in a position to continue to provide services at the level that residents expect, and I'm talking about the bread and butter services, the trash pickup, the street lights working, potholes being filled, we have to begin to position ourselves so that we have those dollars to do that in this changing landscape,” Smith said.
To address potential financial strain, Smith has asked Lima City Council to approve a voluntary early retirement incentive program for eligible city employees. The proposal would apply to employees with at least 25 years of service. Smith says if all eligible staff choose to participate, the move could substantially reduce labor costs and improve operational efficiency.
