Niles scrambles to pay income-tax refunds

NILES — Mired in the throes of fiscal emergency since last October, the financially strapped city has to come up with $40,000 to pay income-tax refunds now and perhaps $20,000 more later this year.

No one was able to say today where the city might find the money.

“That’s general-fund money we don’t have,” said Charles Nader, city auditor. “There’s no money available.”

The shortage came to light during a council roundtable discussion when Lisa Smathers, income tax director, said only $15,000 had been allocated to the income-tax office for refunds and that the usual amount is in the range of $60,000.

“We’ve been getting two or three calls a day from people asking us why they haven’t gotten their refunds,” Smathers said.

The director said many of the refunds are for an extra 0.5 percent residents who work in other cities paid in advance where they are employed. Council, however, eliminated that requirement retroactive to the beginning of 2014, which means all of those who paid then are owed refunds.

For the complete story, read Thursday's Vindicator and Vindy.com