The city of Butler got some good financial news for a change with the report on earned-income and business privilege tax collections for the first seven months of the year.

Earned-income tax collections for the seven months in question showed an increase of 13 percent over 2011. Business privilege tax collections were up by 10 percent.

Parking meter collections also were up slightly, $61,713 on July 31, compared with $55,313 on July 31, 2011.

The earned-income tax increase amounted to $63,482 while the business privilege increase was $120,000.

The approximately $183,000 in additional revenue would be grounds for city government to celebrate, if it were not for a financial bogeyman lurking in the shadows.

And, while a “bogeyman” is a frightening, imaginary being, the bogeyman on the city’s doorstep is not at all imaginary. It is the fact that the city has a structural deficit and still hasn’t reached contract agreements with the police, firefighters’ and non-uniformed employees’ unions.

When agreements are finally reached, those pacts could consume the $183,000 or possibly much more.

The fact that the city is now showing increased revenue might provide an incentive for the unions to be less accommodating to the otherwise financially strapped city in terms of what they agree to in their new labor accords. That would be a terrible mistake, and should not be allowed to happen. The city is in desperate financial shape and costs must be reduced.

Still, the news about the increase in revenue collections is something about which city residents can feel happy — even optimistic.

As explained by city Treasurer Jeffrey W. Smith, big factors in the latest revenue outcome have been countywide tax collection through Berkheimer Associates and efforts by the Treasurer’s Office begun under former Treasurer Jon Campbell and continued under Smith’s tenure.

Smith said Campbell’s focus was “getting people on the tax rolls to get them paying the per-capita tax. We took the next step, making sure they were on the rolls for earned-income tax with Berkheimer as well.”

While Smith acknowledged the obvious — that there are no guarantees the increased revenue will continue to grow through the end of the year — city residents can feel upbeat about the prospect of the city having begun to turn its financial fortunes around.

But then there’s that bogeyman. Despite the good news, the city is far from being out of the financial woods, and city officials must remain committed to dealing with the contracts challenge in a way that acknowledges employees’ needs while not ignoring the city’s overall best interests.