Thursday, January 21, 2016
By Jordan Cohen
NILES
A state auditor’s representative sharply criticized Mayor Thomas Scarnecchia for failing to implement the city’s financial-recovery plan from fiscal emergency in what amounted to a tongue-lashing during Wednesday’s council meeting.
The city has been in fiscal emergency since October 2014.
“It’s disturbing and disappointing,” said Jim Armeni, east regional liaison for Ohio Auditor Dave Yost. “You cannot stall with the plan.”
The 21-point plan, developed by Scarnecchia’s predecessor, Ralph Infante, last December and approved by the city’s deficit commission, contains provisions to eliminate the city’s income-tax department and police dispatchers – both of which Scarnecchia opposes. Armeni questioned the mayor about the status of both.
“I find it disturbing you bring up [the dispatchers and tax department],” responded Scarnecchia, who later apologized for the tone of his response. The mayor, who took office Jan. 1, said he has been working with the state auditors to try to find funds that would enable him to submit an amended plan.
His response did not satisfy Armeni, however.
“If you can’t lead, find someone to follow, and if you still can’t do that, then step aside,” said Armeni, directing his remarks to both mayor and council. “This is not business as usual.”
Making matters worse for the mayor, city Auditor Giovanne Merlo revealed that an anticipated $700,000 carry-over in the general fund from 2015 is only $200,000 – a half-million short of projections.
Merlo said the reason for the lower figure was that anticipated revenue for last December fell far short of expectations.
“We’re bleeding $92,000 a month more than we’re bringing in, and that’s a hemorrhage,” said Steve Papalas, D-at large, who joined in the criticism of the mayor for his handling of the plan.
“The money will run out in March [and] we don’t know where we’re at because you’ve dismantled it,” Papalas said.
“The longer we wait, the worse shape we’re going to end up in,” said Councilman Steve Mientkiewicz, D-2nd.
Scarnecchia said he expected “to have a decision soon” on either implementing or revising the plan, but did not give a date.
After the meeting, the mayor told The Vindicator he may have no choice but to accept the current plan if he and the city’s state-appointed financial supervisors are unable to come up with alternative funds to save jobs.
Another key component of the plan is a 0.50 percent income-tax increase, which will be before the voters in the March primary.
If approved, the $2 million annual revenue would be allocated only for the police and fire departments.