Niles auditor projects big loss from income tax

By Jordan Cohen

Council committees got a double dose of bad financial news.

NILES — City Auditor Charles Nader says income tax collections could be down by $115,000 this quarter and $500,000 for the year.

In addition, council has been asked to consider raising sanitary-sewer rates even though the increase would be unrelated to the revenue loss.

Nader told council’s finance committee Wednesday the half-million-dollar decline is based on projections he felt needed to be addressed sooner rather than later.

“How many hits like that can you take before you have to do something?” Nader asked.

The auditor attributed the declining revenue to resident job losses at General Electric, Amweld and Indalex Aluminum. In addition, Nader said the higher collection last year was partly attributable to taxes paid by Niles employees at Delphi Packard Electric who accepted company buyouts.

“That brought in [nearly] $50,000, and you’re not going to see that again,” Nader said.

The auditor told the finance committee the city “isn’t scrimping on savings,” but he warned council members to avoid general fund appropriations that are outside current budget allocations.

“I’d rather do it this way than all of a sudden find out our bank is empty and we have to make cuts,” Nader said.

Moments later, during the utilities committee meeting, Randy Fabrizio, superintendent of the waste treatment plant, asked council to consider increasing sanitary sewer rates.

“The rates have not been adjusted for 18 years, and [council] should start developing a strategic plan for rate increases,” Fabrizio said.

The superintendent described the condition of the city’s sewers as a “state of disrepair” including the treatment plant, which he has said is nearing the end of its useful life. Fabrizio said the system was overburdened by this year’s difficult weather conditions, which he described as the “wettest on record.”

Fabrizio told the committee he needs more than $93,000 for the installation of raw sewage pumps. He said the money will have to be taken from an unencumbered sewer fund because no money is available elsewhere.

“We’re doing the best with what we have,” Fabrizio said.

There were even more expensive projects of concern to the committee.

Committee members received a report on planned repairs for electricity substations on Vienna Road and Walnut Street along with a replacement for the computer monitoring system. The total cost is $840,000.

The good news, committee members said, is the repairs had been anticipated and funds already allocated for the work.