NILES Council passes annual budget

Most of the legislation is necessary because of new state requirements.
By SHERRI L. SHAULIS
VINDICATOR TRUMBULL STAFF
NILES -- Council has unanimously approved a 2003 budget of $51.7 million, a $10 million increase from this year, but it's the same money that's been there all along, auditor Neil A. Buccino explained Wednesday night.
The extra funds were traditionally left in the city's unappropriated budget and used to make one-time, year-end cash transfers to departments subsidized by the general fund.
"Say the parks department brought in $160,000 and the budget was for $200,000," he said. "This would cover that $40,000."
New requirements
Traditionally, Buccino said, the money would not be appropriated until the end of the year when it was needed, but new state requirements make it necessary to account for the money up front.
Council also gave first reading to two ordinances affecting income tax collections.
In the first, businesses will see changes in their quarterly estimated tax payments. Under the old rules, estimated payments of 25 percent were required every three months. Now, after the passage of House Bill 477, only 90 percent of the estimated bill is required, said Law Director J. Terrence Dull.
"Now the payments are 221/2 percent each quarter," he said. "And it also changes the due date to about one month later than it was."
Will apply to businesses
Tax Director Janet Rizer said the changes do not affect individuals who pay estimated taxes, but it will apply to businesses. The due date is now the same as federal payments.
The second piece of legislation makes it easier for the city to collect income tax from people employed for special one-time events.
When concerts or special events are held at places like Cafaro Field, anyone working the event as an entertainer, promotional booth worker or sports event participant is required to pay city income tax.
The new ordinance will require the promoter of each event to withhold the city tax .
"This requires the promoter to pay the income tax for events, like if Kenny Rogers came and sang," Rizer said. "There would be no way we would be able to track them down otherwise."
Council is expected to pass the legislation at its next regular meeting.
slshaulis@vindy.com