Niles city officials banking on voters’ desire to be safe

All eyes have been focused on Niles city government since a 0.25 percent income-tax increase went down to defeat in the Nov. 3 general election.

Voter rejection of the increase sent the mayor and city council back to square one in their quest to balance the general- fund budget in 2016 and every subsequent year.

The balancing act is a key component of the financial recovery plan developed by Mayor Ralph Infante and council to persuade Ohio Auditor David Yost to lift the state-mandated fiscal emergency that was declared in October 2014. A state Financial Planning and Supervision Commission is overseeing the city’s budget. The commission will decide if city government meets all the requirements to have the emergency lifted.

But now, all bets are off as a result of the voters saying no – quite convincingly, in fact – to the 0.25 percent income- tax increase.

So, when city council voted last week not only to return to the ballot in March, but to seek double the amount that was rejected this month – 0.5 percent – we wondered what was behind its decision. After all, the 0.25 percent proposed tax hike was turned down by almost 700 votes.

However, when we saw that the $1.8 million a year in additional revenue would go to the police and fire departments, the proposal made sense.

Mayor Infante, who will be leaving office at the end of this month and will be succeeded by former councilman Thomas Scarnecchia, and council have rightly concluded that city government must build trust with the taxpayers.

There’s no better way to do that than to demonstrate to residents that their personal safety is a top priority.

BUT WHAT ABOUT 2016?

All that said, the question about what to do about the 2016 general-fund budget still looms large. The budget is dripping red ink, and even if voters approved the tax increase next year, the new revenue wouldn’t be seen until 2017.

In the words of Quentin Potter, chairman of the state financial commission: “It would be very difficult to balance the [2016] budget without significant spending reductions. That may include some reduction in force.”

Potter has pegged the 2016 budget shortfall at $1.8 million.

A 16 percent across-the-board cut in spending appears in the offing – unless the mayor and council can find additional revenue to bolster next year’s budget.

Thus, while we applaud Infante and city council for their foresight and their willingness to do whatever is necessary to eliminate the red ink in future budgets, the spending plan for next year must be addressed sooner rather than later.

Potter understands their desire to go back to the voters for an income tax increase, but as he has said, “ … you’re still not getting the revenue in 2016. You can’t count revenue that you don’t have coming in.”

As for the proposed 0.5 percent increase, the mayor said last week that the safety forces would receive the new revenue, while some of the money the police and fire departments now get from the general fund would be redirected to other departments.

The city of Niles’ income tax rate is now 1.5 percent.

Mayor-elect Scarnecchia, who was vacationing in Florida when the decision was made by Infante and council to return to the voters in March, said he has not had a chance to review the city’s current financial condition.

However, Scarnecchia, who defeated Infante in the May primary and went on to win the general election over write-in candidate Barry Profato, made it clear that saving the safety forces must be the top priority.

“We can’t close the city,” Scarnecchia told The Vindicator.

Likewise, council President Robert Marino, a member of the state commission, says the public should consider the ramifications of rejecting the half-percent tax increase in March.

“Considering all that is going on in our community, I don’t think anybody doubts the need or our sincerity to provide adequate safety forces’ protection,” Marino said. “I think it’s essential.”

The council president is right about the community, but he and his colleagues have got to deal with the here and now, which means finding places in the budget to cut. Unfortunately, a reduction in the workforce cannot be avoided.