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Despite Nov. defeat, Niles voters to face higher tax proposal
By Jordan Cohen
NILES
Despite a 56 percent margin of defeat in the last general election, the city will make another attempt for voter approval with a higher-percentage income-tax increase than the issue that was rejected.
Council has voted to place a 0.5 percent increase on the ballot in the primary election next March. Earlier this month, voters turned down a 0.25 percent increase by 692 votes. The current income tax rate in Niles is 1.5 percent.
Because Niles is in state-declared fiscal emergency, it must balance the budget each year. The task is more difficult because the tax hike that eventually would have raised as much as $900,000 annually was rejected.
“The difference this time is that the revenue will go strictly to police and fire,” said Mayor Ralph Infante, whose term expires at the end of the year. “That way, we can hopefully free up revenue for other departments paid through the general fund.”
City Auditor Giovanne Merlo said the higher income-tax rate will generate at least $1.8 million for the safety forces. That is the same shortfall the state-appointed financial supervisor said would have to be overcome for the city to balance its 2016 budget – a reduction of 16 percent for each department. The supervisor, Tim Lintner, said at the time that without additional tax revenue, job cuts were inevitable, particularly in the police and fire departments.
“That additional half percent will help us close the gap and will reduce what we have to [allocate] to police and fire,” Merlo said. The auditor said voter approval means half of all income-tax revenue will go to the safety forces and the other half to the city’s general fund.
“At least we won’t have the strain where we were,” Merlo said.
The city is working on an amended five-year plan to emerge from fiscal emergency, which must be approved by council and the Financial Planning and Supervision Commission overseeing spending.
Infante has invited Mayor-elect Thomas Scarnecchia, who defeated the incumbent in last May’s primary, to work with him in revising the plan.
“We can’t close the city,” said Scarnecchia, who is vacationing in Florida and plans to meet with Infante next week. “Our first priority is to save the safety forces.”
The mayor-elect said he has not had a chance to review the finances, so “it’s hard for me to endorse or reject when I don’t know what’s going on.”
Council President Robert Marino, also a member of the deficit commission, said the public should realize how dire the situation will be for the safety forces if the half-percent tax hike is rejected next March.
“Considering all that is going on in our community, I don’t think anybody doubts the need or our sincerity to provide adequate safety forces’ protection,” Marino said. “I think it’s essential.”