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Should the Niles income-tax department be canned?
By Jordan Cohen
NILES
Members of the Financial Planning and Supervisory Commission still want a recommendation from city Treasurer Robert Swauger whether to eliminate his income-tax department and replace it with the Regional Income Tax Agency even though the treasurer says he is in no position to offer one.
At least two of the six members of the commission, created after Niles was declared in fiscal emergency, have indicated they prefer the city sign on with RITA.
Swauger submitted a study required by the city’s financial recovery plan comparing the department’s operating costs with those of RITA, whose member cities include Youngstown, Girard, McDonald and Campbell.
His review, comparing current and future operating costs, determines that replacement with RITA could save the city more than $70,000 annually if long-range projections prove to be accurate.
The treasurer, however, pressed by several commission members, said too many issues must be resolved before he can make a recommendation.
The four-member income-tax department consists of an administrator and three unionized employees – a chief clerk, tax clerk and an investigator. The investigator position is vacant.
“What is going to happen to the existing employees,” Swauger asked in an email to the commission. “Are we eliminating them or moving them into other positions?”
The treasurer said some RITA cities maintain a customer-service representative while others do not. Swauger said city council will have to decide.
“Maintaining or eliminating employees is affected by the collective-bargaining agreement,” the treasurer said.
Swauger’s figures list current department annual operating costs at more than $217,000 including $67,000 for hospitalization coverage.
Total departmental costs could skyrocket to $281,000 Swauger said, particularly if an investigator is hired.
Mary Ann Coates, a commission member and certified public accountant, indicated she favors eliminating the entire department.
Sharon Hanrahan, commission chairman, said she understands Swauger’s reluctance but favors switching to RITA. “I’d recommend it based on the numbers, and I’m pretty sure so would the state auditors,” she said in an email to The Vindicator.
Robert Marino, council president and commission member, said, “Council is going to want direction from the treasurer on the best way to run his office [and] I want answers to the questions he posed,” Marino said.
Swauger said council must make a decision “within four to six weeks” if it chooses to go with RITA because the agency needs six months to complete the transition and start collections in 2016.