BUDGETING Niles to trim spending through end of year

Department heads must trim capital improvement budgets in 2005.
By SHERRI L. SHAULIS
VINDICATOR TRUMBULL STAFF
NILES -- All city departments subsidized through the general fund have been ordered to stop spending through the end of the year.
Mayor Ralph Infante said that because tax collections in the city are down by more than $100,000 this year, officials are looking to trim spending rather than dip into the city's savings.
Auditor Neil Buccino read a letter at Wednesday's city council finance committee meeting from him and Infante that was sent to general-fund departments.
Departments such as the police, fire and parks were ordered to stop spending as of Oct. 29. Buccino said only pre-approved expenditures, ongoing programs and emergency spending will be allowed after the deadline.
Also, he noted, city employees who want to sell unused vacation time back to the city have to submit such requests by Nov. 5, or they won't be considered.
"We don't want to eat up all of the unencumbered money," Infante said. "That's there for emergencies."
Though the city is in no financial danger, city officials have always taken a proactive approach in keeping its reserves healthy.
But even that has become a concern for Infante, who said the economy has affected the city's investments in recent years.
"We've lost $1.5 million in interest alone," he said, referring to declining interest rates.
About next year
In addition to the spending freeze, department heads were also told to trim next year's capital improvements budgets by at least 25 percent.
"Anybody subsidized by the general fund is not looking at any real capital expenditures in 2005," Buccino said.
Buccino said budget hearings for city departments will begin in early November. Though department heads will need to trim planned expenses for now, he said, it could change as the year progresses.
Infante agreed, saying the income taxes the city will collect from the new West Corp. customer service center, which will open later this month, will bolster city revenues. He noted other businesses are looking to relocate into Niles, which also will help increase the city's finances.
"Next year will be a lot different," he said.
Councilman Frank Fuda noted other businesses already under construction, such as Gorton Food Services, will also be in operation by next year. That company plans to hire between 40 and 50 employees.
"All together, it will put us back up where we were," Fuda said.
slshaulis@vindy.com