Commission chairman: Time for Niles to consider layoffs

By Jordan Cohen

news@vindy.com

NILES

The outgoing chairman of the fiscal commission overseeing Niles’ finances said the city should “start looking at the potential implementation of layoffs” because its fiscal problems continue.

Sharon Hanrahan said she thinks the time has come because of the city’s difficulty in finding enough money to issue tax refunds.

The Vindicator reported July 9 that the city was scrambling to find $40,000 to meet the initial refund demands.

“These are costs you are responsible for,” said Hanrahan who is being reassigned. “My concern is cash coming in and if you will be able to meet demands.”

On Wednesday evening, council authorized $23,000 in transfers from other departments to cover some of the refunds, which still leaves it significantly short of what is owed to the taxpayers.

“We’re still looking for more money,” said Mayor Ralph Infante.

Niles has been in fiscal emergency since last October. According to state auditors, the general fund has fallen by $800,000 this year leaving it with a balance of only $538,000.

Council President Robert Marino said there would have to be a full assessment before going ahead with layoffs. “I don’t want to screw with people’s lives over unknowns,” Marino said.

The city, however, does not have all the data it needs especially with its biggest expense – payroll. Hanrahan reported that Auditor Charles Nader will be unable to fulfill his promise of having payroll records implemented in software by Aug. 1 “because of a personnel issue he had no control over.”

Hanrahan said Nader is personally inputting payroll data because the employee who previously handled it bid successfully on another city job and left the auditor’s department.

“Until we get software where we have good data, it will be hard for the city to make good decisions,” she said.

Several council members questioned why other employees in the department were not cross-trained to pick up the slack. Nader, said to be working on the payroll, did not attend the meeting.

In the meantime, council moved forward on enacting some of the 35 points in the city’s recovery plan approved by the commission.

It unanimously voted to place a 0.25 percent income-tax increase on the November ballot, which would raise $900,000 in 2016.

At the same time, however, council defeated by a 4-3 vote another plan component that would eliminate three lieutenant positions in the fire department by attrition. The rejection came despite assurances from Infante the cuts do not violate the union contract.

The commission does not meet again until Aug. 19.