Niles strives to avoid layoffs
Pact talks threaten ‘sustainable’ budget
By JORDAN COHEN
VINDICATOR CORRESPONDENT
NILES — While nearby cities such as Warren ponder additional safety- force layoffs and service cutbacks because of multimillion-dollar deficits, the situation appears to be more stable here, where the mayor, auditor and treasurer see no deficits or subsequent layoffs — for now.
“Our budget is sustainable, but we still monitor it every day,” said Auditor Charles Nader. “We’re trying to watch our spending, and we’re still not hiring.”
Looming on the horizon, however, are the contracts with the city’s police and fire departments, and these could impact the budget if wage increases are awarded.
Last week, firefighters rejected a three-year wage freeze, although the union’s president indicated that membership was more concerned about the city’s proposal to reduce the number of personnel manning a shift in the winter.
As for police negotiations, patrol officers, represented by Teamsters Local 348, declared an impasse and requested fact-finding through the State Employment Relations Board.
“Pay raises could cost the city from $125,000 to $200,000,” Nader said, “and that could push us either way.”
The city is operating on a general-fund budget of nearly $16.7 million this year, mostly because of budgetary reductions averaging 5 percent for nearly all departments.
Asked if that percentage was adequate, Nader responded that a higher figure such as 8 percent would mean “you have to start cutting people.” Currently, the city has no plans for layoffs.
Niles’ ability to stay afloat comes despite a projected reduction of $500,000 in income-tax revenue this year.
Treasurer Robert Swauger said his estimates include the declines in revenue because of layoffs at Delphi, General Electric and the temporarily idled GM Lordstown facility.
Figures released by Swauger’s office show that last year, Niles residents who worked for those companies paid more than $295,000 — a far cry from 2007 when the same companies generated more than $472,000 in income-tax revenue for the city.
Trends from the first quarter of this year show even greater revenue losses, some by half; however, Swauger said he does not anticipate revising his tax-collection projections.
Niles also is earning less money from its investments, according to the auditor, who forecasts earnings of $750,000, well below $1.4 million earned two years ago.
“I think if our interest earns significantly less, it would affect next year’s budget more so than this year’s,” Nader said.
The auditor said that summer and other temporary hiring has been substantially limited for the parks, swimming pool and maintenance, which has saved the city around $45,000.
Mayor Ralph Infante noted that vacant slots in the fire department have not been filled, one of which would have paid $65,000.
In addition, the city will not buy cruisers this year despite a request for at least four from the police chief.
Earlier last week, the mayor would not rule out the possibility of layoffs should the city be unable to negotiate contracts without wage increases.
Infante, however, is optimistic about Niles’ revenue now and next year if the city can hold the line on wages.
“At the moment, I think we’ll be OK this year and possibly in 2010,” the mayor said.