Niles budget for '07 is lean

NILES — The city's 2007 budget is lean, Councilman Stephen Papalas told council today.

Papalas, D-at large, finance committee chairman, credited department heads with being reasonable in seeking funds to operate their departments.

The most significant change in the 2007 budget is the cost of electricity the city purchases from AMP-Ohio, a nonprofit consortium that provides wholesale power to communities, including Niles, for resale to local customers.

Mayor Ralph J. Infante said $24 million has been budgeted to purchase electricity from AMP-Ohio next year.

This year, the city budgeted $22 million, but an additional $4.9 million was transferred into the electric fund because of an increase in the wholesale price after an accident at an AMP-Ohio generating facility on the Ohio River caused a supply loss.

As a result, the consortium was forced to purchase power on the open market, thus paying a higher price.

Another reason for the increased budget is the 2.75 percent pay raises negotiated with unionized employees, city Auditor Charles Nader said.

Overall, he explained, about 3 percent was added to the city’s payroll because of increased benefits.

The mayor noted that $1 million has been set aside for capital improvements.

The police and fire departments are at full strength and no new hiring is anticipated this year, he added.

City council approved the nearly $70 million budget, an increase of about $2.3 million over this year’s original appropriation.

Nader pointed out, though, that carryovers from 2005 to this year and additional appropriations mean the city will end up spending about $74.5 million this year.

He estimated that about $71 million will be spent in 2007 to operate the city.

Also during the meeting, the administration and lawmakers lauded Frank Fuda, who served as the 1st Ward councilman for 17 years. Fuda will become a county commissioner after the first of the year.