Niles water dept. deficit triggering state oversight, mayor says


NILES

Mayor Ralph Infante says the $2.7 million deficit in the city’s water department fund as of this summer is probably the reason the Ohio Auditor’s Office placed the city in fiscal emergency Tuesday, even though the city’s overall deficit is much lower.

The city has money in other funds to offset much of the water department deficit that was reported July 31, and Infante believes the city will end the year without an overall deficit, but he agrees there is a lot of work ahead to rectify the city’s financial problems.

The state auditor’s office said the city was running an overall deficit of $61,093 as of the end of July 2014 but had a deficit of $487,973 at the end of 2013.

“We’ve taken all the steps to reduce costs in all departments,” Infante said of reductions in personnel he has made since 2009 to cope with the loss of income-tax and interest revenues when the U.S. economy soured in 2008. “We took steps by leaving 22 jobs unfilled,” he said.

“The city of Niles faces a dire financial challenge,” Ohio Auditor Dave Yost said in a press release announcing the designation. “This office stands prepared to help the city conquer it.”

Read more about the situation in Wednesday's Vindicator or on Vindy.com.

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