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Niles treasurer could face court order if non-compliance continues
By Jordan Cohen
NILES
The chairman of the financial commission overseeing the city’s fiscal emergency recovery chastised Niles Treasurer Robert Swauger Wednesday for failing to reconcile financial records, and warned that the commission could go to court against him if reconciliation is not completed by next month.
“I’m going to assume there is a lack of cooperation and a lack of urgency,” said Quentin Potter, Financial Planning and Supervision Commission chairman. “This commission will have to take steps [possibly] a [court] order to say this has to be done.”
Swauger, a part-time treasurer, is paid about $7,590 annually and was first elected to the city position in 2005 — and ran unopposed in 2013.
Potter said he expects financial reconciliation by the commission’s next meeting May 25. If not, the commission could decide to ask a judge to find Swauger in “substantial non-compliance.”
According to the recovery plan approved by the commission, reconciliation must be completed by the 15th of each month for the previous month. Swauger has yet to meet the deadline this year.
“Familiarity with the [software] system is hampering us,” Swauger told the commission. “We didn’t know the system as well as we thought.”
Tim Lintner, one of the city’s state-appointed financial supervisors, said that without reconciliation, he cannot present completed financial records – a requirement for the commission’s monthly meetings. That means the commission does not have an accurate picture of city’s finances, which it is required to review.
Lintner said that the current projected deficit for 2016 is nearly $130,000, but that may not be accurate because Swauger and his staff are unable to reconcile $28,000 of expenditures in three accounts. Lintner said the deficit could be higher or lower depending on the status of the $28,000.
Swauger said he expects to resolve the issue with additional training from the software provider next month, but that did not suit Potter, who wondered why the treasurer did not seek help months ago.
“You have to get your reconciliations done on time,” Potter said, calling the treasurer “the protector of public money.”
“I am at fault,” said Swauger, adding that his staff has been working hard to correct the issues. “I’m not going to blame my girls.”
Potter also questioned whether the current recovery plan is adequate in light of the projected deficit and asked Mayor Thomas Scarnecchia who sits on the commission if there is anything in the plan to make up the shortfall.
“I doubt it,” Scarnecchia replied.
The mayor suggested a 90-day loan from one of the city’s revenue generating enterprise funds to cover the deficit, but Potter was not sympathetic.
“The problem doesn’t go away in 90 days,” the chairman said.
Potter, noting that payroll and benefits make up “85 percent of spending,” suggested examining both for possible cost cutting. Lintner said union health care concessions have saved the city $1.3 million, but added that employees still do not pay for their health care coverage.
“At this point, free health care is a dinosaur,” the financial supervisor said.
Potter warned that if the spending problem continues next month, he will have to call for an amended plan. If so, it would mark the fourth time the plan has been modified.
“How do we get to balance,” the chairman asked. “We’re not going to know until we can be sure the city will not overspend.”