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Niles clerk: Funds to pay firefighters to run out soon
By Jordan Cohen
NILES
The financially strapped city continues to careen from one cash crisis to another. On Wednesday, a payroll clerk warned the deficit commission overseeing Niles’ fiscal emergency that funds for firefighter wages will run out by Oct. 4.
“How do I pay the fire department if there is no money available?” asked Karen DeChristofaro. “This is an appropriation issue.”
Her comments followed those of Tim Lintner, state auditor project manager, who said that appropriations exceed current revenues by $2.3 million. Lintner said that with budget carryovers, the city’s general fund deficit for the remainder of the year is $983,000.
Lintner said the city has spent more than $500,000 in overtime costs and sell-back, a benefit in which city employees are paid for unused vacation. Mayor Ralph Infante, also a commission member, said the city still is negotiating with its unions apparently in an effort to eliminate the sell-back benefits.
“How about eliminating overtime,” said the commission’s Mary Ann Coates, a certified public accountant.
Commission Chairman Quentin Potter advised Lintner to search for appropriations for the fire department. One possible source is more than $460,000 in funds that are dormant because their accounts are no longer in use.
“[City council] has to look where things can be cut because it can’t keep going on this way,” Lintner said. “There are multiple lines at a tipping point and adjustments have to be made.”
The commission, however, appears to be split over whether those adjustments should include layoffs.
“I’m against layoffs of the safety forces and the income tax department,” said John Davis, a commission member. “The wrong people will have to pay for the mistakes of others.”
“A lot of people are squirming right now about losing their jobs,” said Robert Marino, council president and commission member, “[but] we don’t know how we’ll handle jobs because the numbers are fluid.”
The critical component of fiscal emergency recovery is approval by voters in November of a 0.25-percent increase in the city income tax. Potter questioned whether the tax increase, which would generate $900,000 annually, will stem the city’s tide of red ink.
“Even with a successful ballot, I’m not sure this will be enough, and the plan would at least have to be amended,” the chairman said. Potter said voter rejection of the tax increase would leave the commission no alternative but to reject the current five-year recovery plan and force the city to develop an alternative.
“We’ll have a better idea where we stand in November after the vote,” Potter said.