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Niles council approves 5-year recovery plan
By Jordan Cohen
NILES
Council reluctantly, but unanimously, approved a revised 21-point five-year recovery plan to help Niles emerge from the fiscal emergency that has burdened the city since October 2014.
“Nobody is happy with this plan,” said Steve Papalas, D-at large, Wednesday night.
Had there been no plan, however, the Financial Planning and Supervision Commission overseeing spending would have forced the city to reduce its budget to 85 percent of the previous year’s figure – a requirement under state law.
“That would be a disaster,” said Papalas, addressing his remarks to the city employees who packed council chambers. “Some of you in the audience won’t be here if that happens.”
Treasurer Robert Swauger objected to one of the plan’s proposals in which his income-tax department would be replaced by the Regional Income Tax Agency. Outgoing Mayor Ralph Infante, who kept that proposal from his original plan, projected the savings by switching to the outsourced agency at $43,000. Swauger disagreed.
“This plan saves minimal money,” argued the treasurer in an effort to save his four-member department. “It’s the wrong thing to do.”
Several council members said they hoped to find other positions for the workers whose jobs will be eliminated if council contracts with RITA. That did not sit well with John Davis, a deficit commission member who, like Swauger, opposes eliminating the department.
“It looks to me like [RITA] is going to cost more, and then they’re going to find jobs for those people,” Davis said after the meeting. “This makes no sense.”
The plan had to be amended due to the defeat in November of a 0.25 percent income-tax hike, which was the linchpin for balancing the budget. Voters are being asked in March to approve a higher amount – a 0.50 percent increase. Revenues from that increase, estimated at $2 million annually, would be allocated only to the safety forces.
“Should the income-tax increase fail, the city will balance the 2016 budget through reductions in force of general-fund employees,” Infante’s plan states, adding cuts also are likely for the police, fire and the park and cemetery departments.
The plan will be submitted to the commission for review Monday.
Council also unanimously approved a three-year contract with the union representing more than 75 municipal employees. The package, according to Bo Marchionte, president of the American Federation of State, County and Municipal Employees, contains no pay increases, freezes retirement incentives and eliminates incentives for new hires.