LIMA, Ohio (WLIO) - The City of Lima began the first night of hearings on Tuesday for Mayor Sharetta Smith’s budget estimate for fiscal year 2026.
The proposed budget, which includes the general, enterprise and special revenue funds, forecasts total expenses of just over $144 million. Total revenues are expected to exceed $148 million. General fund expenses are projected to decrease by 9% compared with fiscal year 2025. Despite a slight decline in city income tax revenue — from $24.1 million to $23.9 million between fiscal years 2024 and 2025 — the budget maintains a 0% income tax increase.
Several city departments appeared before City Council’s Finance Committee during the first night of hearings as the city works to maintain fiscal responsibility amid ongoing financial uncertainty.
"We implemented, last year, some strategies to start holding down costs. That included a hiring freeze, with the exception of critical positions, overtime spending controls, as well as holding on some capital projects, and then, the biggest piece is actually departmental efficiency reviews. And we're going to continue throughout 2026 in an effort to keep those numbers down," says Meri Foster, Finance Director, City of Lima.
City budget hearings will continue nightly through Jan. 15.
