As part of recovery plan, Niles considers axing tax employees

June 4, 2015 at 12:05a.m.

NILES

With council considering eliminating their jobs, tax-department employees argued against using the Regional Income Tax Agency to replace them.

More than 50 people, most of them city employees, crowded council chambers Wednesday in support of their fellow employees.

“To outsource our jobs will eliminate service to the city of Niles,” said Lisa Smathers, income tax director. “By not being fully staffed, we saved the city $50,000 and we’re willing to continue to do that.”

As part of its recovery plan from fiscal emergency, council is looking into the possibility of using RITA to save the city money and increase income-tax collections. A report from Treasurer Bob Swauger estimated long-range savings at $70,000 annually – statistics Smathers disputed by producing figures showing that the savings would be less than $20,000.

Smathers said her conclusions were based on figures from 2014. Swauger’s estimates were from 2015 and future projections.

Carmen Canann, the chief tax clerk, said using RITA will eliminate customer service for the city – an issue that the city has asked Swauger to examine. Debbie Bindas, regional representative for AFSCME Council 8, said the city should retain the department and contract with the Central Collection Agency, which consists of public employees, instead of RITA.

“They brought in $180,000 in Warren from people who had never filed before,” Bindas said.

Several council members voiced their disappointment with Swauger’s report since he has refused to make a recommendation. “I need guidance,” Swauger said, which brought a retort from council President Robert Marino.

“Your numbers mean nothing to me,” said an obviously angry Marino. “I want to hear ‘yes’ or ‘no’ from you and a comprehensive report that takes in all the facts.

“I said this fiscal emergency would affect lives and lo and behold, here it is.”

No deadline has been set for Swauger to complete his study and make a recommendation. In the meantime, council has approved the revised 35-point recovery plan and has completed first readings of several ordinances designed to bring the plan to fruition.