Toledo's 2014 income tax collections, a key economic indicator and the municipality’s largest source of revenue, continued to surpass last year’s figures, but the city's police department overtime costs forced the Collins administration to delay a new class of recruits, officials announced Thursday.

“The trend is positive but it is a very moderate amount of positive growth,” City Finance Director George Sarantou told city council's finance committee.

The city collected $96.84 million from its 2.25 percent payroll tax through Aug. 31, which is nearly 4 percent more than it had by Aug. 31, 2013. With the end of 2014 in sight, Mr. Sarantou said the collections leave him optimistic that the city would reach its budgeted goal of $165.24 million from the tax for the year.

The Collins administration stayed with its estimate for 2014 income tax collections despite concerns early this year that the tax would not generate enough, which would lead to a year-end shortfall. David Black and Oleg Smirnov, two University of Toledo professors hired by council to forecast the city's financial health, predicted the payroll tax would generate between $156.08 million and $159.5 million this year. The income tax is the largest source of revenue for the city's general fund. Police and fire operations consume the majority of the budget’s revenues.

Clarence Coleman, the city’'s commissioner of taxation, cautioned council Thursday about the city's revenues.

“We do have a good ways to go, September through December, and although we are encouraged by what we see, we have a long way to go,” Mr. Coleman said. “We are on track to be on budget for our revenue.”

Decreasing unemployment in the city helped, he said. The unemployment rate for August decreased to 6.3 percent, compared to 7 percent the previous month and 8.9 percent in August, 2013.

Home sale data provided to the city by the Toledo Board of Realtors gave the Collins administration another sign the local economy was continuing its slow rebound. The average home sale price in the Toledo metropolitan area was up to $116,914 in August, compared to $114,237 for the same period last year.

Other revenues the city collected were also up, including money from joint economic development zones. Those areas that allow the city to share payroll taxes with surrounding communities netted $762,508 through Aug. 31, more than 4 percent over budget.

Revenue from red light and speed cameras, however, ran under budget and the city does not expect to collect the $3.24 million it had expected from the controversial devices. Eight months into the year, the city had not yet collected half of that amount.

Casino revenue through Aug. 31 was also below expectations. The city collected nearly $2.8 million of the $5.6 million it wants from gamblers at the east side casino in 2014.

Mr. Sarantou said spending through the city’s general fund was slightly over budget – less than 1 percent. That was driven by a huge overage in police overtime. The Collins administration budgeted slightly less than $2.3 million for police overtime. Mr. Sarantou said the department will exceed that by $800,000.

The city's fire department, which in previous years blew well past its overtime budget, is running under budget for 2014.

The city expects to save $200,000 by pushing its class of 30 police recruits from Dec. 1 to Jan. 1, 2015, when it will include 40 new officers.

Council's finance committee also scrutinized the city's street construction, maintenance, and repair budget.

The council decided Tuesday to delay action for two weeks on a controversial request to shift $1.9 million more for street repaving in Toledo council Districts 4, 5, and 6, as well as a plan to spend almost $1 million for a machine that would allow city workers to do more asphalt paving.

Councilman Mike Craig said the mayor's request to spend $945,000 for a "milling machine” should be tabled so the city could afford the $1.9 million for streets. Approving both measures would push the fund into the red, Mr. Sarantou said.

Contact Ignazio Messina at: imessina@theblade.com or 419-724-6171 or on Twitter @IgnazioMessina.

First Published September 26, 2014, 4:00 a.m.