Niles auditor undermines city’s scheme to exit fiscal emergency

Just two weeks after he suffered a stunning defeat in his re-election bid, Niles Mayor Ralph Infante, a veteran officeholder, was on the receiving end of another “no” vote – but this time he was a victim of circumstance. Unlike the May 5 Democratic primary in which he alone was responsible for his loss to former Councilman-at-large Thomas Scarnecchia, last week’s vote against the 35-point fiscal recovery plan developed by Infante was the result of Niles Auditor Charles Nader being unable to meet a crucial deadline.

The rejection of the mayor’s plan – it is designed to get the city out of fiscal emergency – by the state Financial Planning and Supervision Commission that came last week was triggered when Nader admitted he could not complete installation of payroll into a new software system by Monday. The auditor, who did not seek re-election this year and will leave office at the end of the year, said he could complete the project by Aug. 1.

That news certainly did not sit well with members of the fiscal oversight commission.

“It’s ridiculous,” said Mary Ann Coates, the only certified public accountant on the panel. “I don’t see how it would take that long.”

Sharon Hanrahan, commission chairman, said state auditors need timely electronic information on the condition of Niles’ finances much sooner.

“We will have gone eight months without payroll information,” Hanrahan said. “It is an important part of everything.” The chairman made the motion to reject the five-year fiscal recovery plan on the grounds that state statutes require such action if the entire scheme cannot be approved.

The vote was 6-1, with Infante understandably being in the minority. After all, not only has the mayor come up with a recovery blueprint that would give the city a $2.1 million surplus in 2019 – the general fund showed a $500,000 deficit at the end of 2013 – if all 35 points were implemented, but state auditors appear to be impressed, saying it’s “viable and realistic.”

HIGHLIGHTS OF PLAN

Among the highlights is a proposed 0.25 percent increase in the city income tax that would have to be approved by the voters and savings in medical costs, which have to be negotiated with the unions representing Niles city workers.

It has been seven months since Ohio Auditor Dave Yost declared Niles to be in fiscal emergency, thus giving rise to the Fiscal Planning and Supervision Commission. And while the Infante administration has made major strides in cutting spending – 22 jobs have remained unfilled – a majority of Niles residents who cast ballots in the May primary obviously agreed with former lawmaker Scarnecchia who blamed the mayor for the fiscal crisis.

It is clear that residents are unhappy with the way city government is conducting business and, therefore, have decided that a change in leadership is necessary.

It is, therefore, unconscionable that one individual, Nader, is allowed to undermine the fiscal recovery of the city because of being unable to get his work done on time. Nader has said he will not resign, but that does not mean he should continue to have such a major role in completing the recovery plan.

State Auditor Yost should step in and instruct members of his staff to install the new payroll software. To hear commission member Coates tell it, this isn’t rocket science.