Council OKs budget of nearly 70 million

Council's Finance Committee chairman terms the 2007 city budget lean.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
NILES -- City council has approved a nearly 70 million budget for 2007, an increase of about 2.3 million over this year's original appropriation.
City Auditor Charles Nader said the budget is 69,692,005 for next year, compared with this year's initial appropriation of 67,366,690.
Nader pointed out, however, because of carryovers from 2005 to this year and additional appropriations, the city will end up spending about 74.5 million this year.
The auditor estimates that about 71 million will be spent in 2007 to operate the city.
Councilman Stephen Papalas, D-at large, chairman of the finance committee, described the budget for 2007 as lean.
He credited the 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 in 2007.
Higher electric cost
This year, the city budgeted 22 million to buy power, but an additional 4.9 million was transferred into the electric fund because of an increase in the wholesale price.
Wholesale power costs were increased because an accident at an AMP-Ohio generating facility on the Ohio River caused the loss of supply. As a result, the consortium was forced to purchase power on the open market, thus paying a higher price.
In the spring, Infante imposed a surcharge of 2.4-cents per kilowatt hour to city customers to increase electric fund revenue. That was later reduced to 1.7 cents per kilowatt hour.
Another reason for the increased budget is the 2.75 percent pay raises negotiated with unionized employees, 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.
During the meeting, both 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.
yovich@vindy.com